Secured Lending Options
Not every client wants to pay cash for their Caribbean vacation or investment home, regardless of whether they have it available or not. For most buyers our private loans are a reasonable option, however not all buyers are willing to pay the higher costs of Caribbean financing. For those with the assets, we offer some secured lending options.
Offshore Stock Loans in the Caribbean
Stock loans are secured against publicly traded stocks. Generally our lender will offer financing in the 40-70% range of the value of those stocks. The terms can vary depending on the stocks themselves, exchange they are on, and the amount of the loan. The rates on these loans are between 2 and 5%, making them much more palatable then a typical private loan.
These non-recourse loans are quick and easy to fund, with no credit checks required. The loans also do not show up on any credit reports, protecting your privacy. Here are a few of the details:
- Minimum loan amount is $50k and can be up to $500 Million.
- Interest rates range between 2% to 5%
- 3 to 10 year loan terms.
- No upfront fees
- Commission paid at closing
- Broker fees dependent on loan amount
Offshore Stock loans offer you the low cost of borrowing you want, by using your investments as collateral. Another way to get your money working for you!
Secured Loans
Another lending option we have is a secured or collateralized loan. This option requires that the borrower puts the equivalent amount of cash that he wants to borrow into the lenders bank as collateral. If you would like to borrow $500,000 for example, you will need to put $500,000 on hold with the bank. Why would a client want to do this, rather than simply using their own funds? Well there are a number of reasons, one example being corporate tax issues if the funds are in a company name.
Again, these secured funds allow the borrower to access capital in the low single digits, much cheaper than the price of financing privately. This option also allows you to borrow money for financing in places which may be more difficult to arrange traditional bank or private lending.
The process of opening the bank account requires more due diligence than our stock loans. The private bank will require a minimum $250,000 balance in the account. The fees for borrowing against your cash holdings vary depending on the amount of the loan.
Talk to us today about our secured lending options and how to access cheaper capital in the Caribbean.