There is a lot of confusion about stock and securities backed, non-recourse lending. Here is a case study for three different scenarios of what can be done for ultimate capitalization if one owns stock and wants to monetize without selling their shares.

Client A is in the gaming business based in the Southeast and had problems getting conventional financing to fund their growth. The project was a bid and fulfillment of contract to place gaming machines in new locations recently approved for gaming. The need was $1.2 million and while the company itself could not fund its growth, the owner’s personal portfolio of mostly blue chip stocks got a loan to value of 85% and a rate of 0.75% with a cap at 1.75% for 5 yrs. He has the option to renew for 2 additional 5 year periods.  Read more...