The Eight Simple Steps to an Institutional Loan Closing

1. Request a loan quote using the Contact Us button found on any page of the HedgeLender website. We aim to provide you a response same day, within a few hours and to generate for you a term sheet offer within 24 hours or less. Foreign stocks or stocks that trade thinly or stocks with special restrictions may take longer. Your single application will make you eligible for all HedgeLender loan programs and features at once.
   
   
2. Receive loan quote(s) and term sheet(s) for review. Choose your offer. You are under no obligation to choose any particular offer, though you must choose at least one and sign a term sheet to proceed.
   
   
3. Attend a conference call with to ensure full understanding of your term sheet. This enables us to be sure that the quotes are acceptable to you, while also allowing you an opportunity to ask questions before moving forward.
   
   
4. Execute/sign term sheet to advance to the next stage. This allows you to not only avail of the loan quote listed in your term sheet, but to customize your securities financing further prior to final loan documents through consultation with a licensed institutional advisor that will be provided for you (see below). The executed term sheet also shows that you understand and accept the offer as presented to you, but does not bind you to accept or move forward in any way with the loan if you should decide it is not for you. This document must be filled out and signed, however, before the transaction can proceed.
   
   
5. Open your account. The stay-in-your account Premier securities-based financing program introduces you to a licensed account representative at the major U.S. brokerage service that will be managing your loan. He/she will assist you with quickly opening your own account, solely in your name, and also assist you in moving your securities to your new account. Your shares do not change title in any way, either at this stage or throughout your loan term. Your account is like any other SIPC-member brokerage account and, and there is no obligation to proceed with any loan activity at this stage. To this point it has simply been a lateral transfer of shares from one brokerage to another, and this can be done as quickly as a day. If you wished, you could simply use this account as your new brokerage account and do nothing else. Or you could proceed to your securities-backed loan.
   
   
6. Consult with your licensed advisor. Once your new account is opened, and assuming you wish to proceed with your Premier loan, you will speak with your advisor to firm up the final characteristics. As part of that process, your ability to service the loan will be established through a Personal Financial Statement and other means as required by law to confirm your identity and to comply with federal requirements as well. This is a simple pro-forma review; your credit has no bearing on the characteristics of your loan offer, only your ability to handle the payments. (Note that in the wake of the subprime mortgage crisis in the U.S. in 2008, documented ability to service loan payments has become a particularly strict requirement for lenders of all kinds).
   
   
7. Loan funds deposited. Upon verification, the actual loan documents will then be presented by your advisor, and upon signing, loan cash will be placed in your checking account, normally within 72 hours of signing of loan documents. The entire process can take place very quickly -- within a few days.
   Note please that this is an all cash, all-at-once loan. Shares are not traded, sold, or modified in any way to finance these Premier loans. Loan cash is not doled out incrementally. All aspects of the transaction are handled through a fully regulated, licensed, well-known U.S. brokerage with full transparence and documentation at all levels and stages.
   
   
8. Maintain loan. You will receive monthly account statements under the Premier program, and will continue to have full access to your account advisor. Should you require a modification of some kind - for example, the opportunity to swap one set of shares for another of similar value - you may bring that request directly to your advisor. If your shares have risen significantly and consistently over time since your loan closed, you may even request consideration for a higher loan amount from your advisor.

Keep in mind that these loans may be paid off at any time, without penalty. Also, that you may structure your repayment to include principal, not just interest. You need only contact your advisor to make arrangements. As these are lien-type loans, once your loan is repaid, the lien is simply removed from your account. Your shares will not have changed title or account during this time.

Note that if you are referred into another program, the closing progression will be different. Drop us a line and we'll be happy to provide you with details.