Consolidate with a Securities Finance Structure to Restructure Your Debt

How Can HedgeLender Help?

A HedgeLender securities loan allows you to obtain the cash needed to reorganize, restructure, or retire your debts.

John Shareholder has a home with a $300,000 mortgage @ 9% and $50,000 in credit cards @ 12% and he wants to refinance. He owns 100,000 shares of XYZ stock, including mutual funds, and believes these are sound investments that will appreciate in in the months ahead. John also has very high balances on his credit cards, which are impacting his financial and credit health in multiple ways.

With our HedgeLender securities loan program he gets a limited recourse loan at 4.35%, payable interest-only quarterly. He can receive enough cash with very good rates and terms sufficient to refinance the house and his credit cards all at once – and still participate in the upside of his securities should they rise in value over time as he expects. That participation is something he would completely lose if he sold his shares outright through his stock broker.

Behind the Numbers:

Analysis:

• John obtains a 75% HedgeLoan @ 4.35%,which will yield $375,000 in proceeds.

• $300,000 pays off the house; he now owns it, free and clear. He uses $50,000 to pay off all his credit cards.

• John has saved himself $6,000 per year in interest expense on his house. He has also saved $2,500 per year in interest expense on his credit cards.

And, since he now has $25,000 in remaining cash from his HedgeLender securities finance program, John can take his family on a nice vacation or buy a new car – or both...!