Securities Finance
Our innovative securities-based lending solutions provide individuals and businesses with the opportunity to leverage their investment assets, access essential capital, and preserve their financial positions.
With competitive interest rates, efficient transaction processes, and non-recourse debt structures, Convici Capital empowers you to unlock the potential of your financial instruments while mitigating risk.
ARTICLE Securities Finance
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Frequently Asked Questions
What is securities-based lending?
Securities-based lending is a flexible borrowing option that allows individuals and businesses to leverage their financial instruments in order to access capital. Essentially, borrowers put up shares, bonds or similar assets as collateral for a loan.
How does a lender take security over the assets used as collateral?
In most cases, a lender will require that the collateral is placed with a third party custodian. The beneficial ownership remains with the borrower, but control sits with the lender pending repayment of the loan. In certain circumstances, a lender may allow the collateral to remain with the existing custodian, and will instead bind the custodian to hold the collateral to their order.
What are the benefits of securities-based lending when compared to other types of finance?
This type of finance transaction is often made on a non-recourse basis, meaning that no personal or corporate guarantees are required. In an event of default, the lender keeps the collateral. This may be the case where the value of the collateral decreases significantly. Also, because the collateral is often listed on a public exchange, there is no subjective valuation. The assets have a value in the market on any given day. This means that transactions can happen very quickly, and usually at lesser cost than a property transaction.
Financing options.
For individuals looking to purchase a home, investors in search of liquidity, or business owners seeking to raise capital, we diligently seek out optimal financing solutions tailored to match your specific needs.
Speak to our team today.
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