SECURITIES LENDING

As part of its sales and trading operations, Argentum Capital is able to offer loans against shares on all major markets. The loans are typically high LTV loans with no margin requirements that are made on a non-recourse basis where the borrower retains all of the upside appreciation in the shares pledged as collateral for the loan. No credit checks and no credit reporting are required.

In the last 5 years, Argentum has reviewed and/or lent against hundreds of share financings and portfolio hedges more than 18 major markets with a total market capitalization exceeding $1 billion. Our approach to lending allows borrowers the flexibility of gaining needed in liquidity at a reasonable cost without sacrificing potential upside.

Benefits of pledging shares as collateral for a term loan include:
  • Flexible Lending Terms: Several months to several years
  • Inexpensive: Below market, interest only payments
  • Non-Recourse: The borrower is never at risk for more than the pledged assets
  • Use of proceeds: No restrictions on the use of proceeds; cash may be used for any legitimate purpose
  • Simplicity: No credit qualifying or intrusive loan approval process is required
  • Quick: Loan closings in typically a week or less once the shares have been received and cleared
  • Access to Capital: from $50,000 to $50,000,000
  • Upside: Borrower retains all of the appreciation in the shares pledged as collateral
  • Taxation: Stock loans in 15 business days after are generally not considered a taxable event
  • Amounts: Large amounts accepted
  • Dividends: Credited towards repayment
Argentum is also able to source loans against bulletin board or penny stocks at a 20% to 50% discount to their pledged value.

Our process is simple. To explore our creative fund raising ideas, please send an email to info@argentumfx.com outlining the securities or stock options you wish to borrow against and the loan amount you are looking to secure. Our loan underwriters will evaluate the securities and provide an Offer Term Sheet with the complete loan details-amount, LTV, term, interest rate, points, etc. Upon review and acceptance of the Offer Term Sheet, Argentum Capital will issue the Loan Agreement for approval and signatures. Borrower signs contracts and transfers stock certificates to Lender. Upon receipt of transferred stock, Lender wires funds to borrower. The entire Quote/Term Sheet/Funds process should take no more than 15 business days after the shares are properly cleared for pledging. At Argentum, we collaborate with borrowers on the terms of each and every loan. Our process is quick, transparent and completely confidential.