An Idea Whose Time Has Come
Frequently, institutional lenders are slow on the uptake to get a sense of what is happening in the private sector. For example, twenty-five years ago when many private real estate investors were repeatedly using No Money Down financing techniques to acquire real property traditional banks and lending institution offered no such provision for this type of real estate financing. Today, not only is it widely used, but most banks have some form of a No Money Down financing option.
In that same manner American Financial has been at the forefront of pioneering a financing alternative for portfolios of publicly traded stock.
While most traditional lending institutions will not offer it, American Financial can convert the value of a current stock portfolio to cash now – without selling a single share of the asset.
American Financial’s Loans For Stock program can fund up to 85% of a portfolio of publicly traded stock. Stockholders can take a loan against that portfolio and still retain beneficial ownership of their stock.
The program was initially designed by Citibank hedge fund managers who utilized it primarily for wealthy individuals and business clients. Today, American Financial offers the same option to smaller investors.
Our program is designed with an automatic hedge that protects the stockholder’s position in the asset. The loan is a non-recourse loan which allows the stockholder to decide at a later date if they would like to fully reclaim the shares and pay the interest.
For a more comprehensive look at American Financial’s Loans For Stock program, please visit: