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1. What Are Stock Loans?
If you are the owner, CEO or significant or minority shareholder of a listed company in Singapore, you will be able to pledge the shares that you own in the company in exchange for capital without selling them.
Equity Capital is a privately held liquidity solutions provider based in Singapore providing stock loans internationally and in South East Asia
We provide funding against the shares you or your company owns. This allows you to raise capital quickly and easily and at a low interest rate with share pledge financing
Equity Capital Solutions works closely with owners of publicly traded companies to bring liquidity quickly and easily.
2. What Is A Non-Recourse Stock Loan?
A non - recourse loan means that no personal guarantees are required by the applicant. This means that in the event of non -payment used by the borrower, the assets will be used to settle the arrears of the loan. If the asset value is insufficient to cover the outstanding amount of the loan, Equity Capital will absorb the difference and no additional payments by the borrower are required.
3. What Are The Benefits Of Stock Loans?
Stock loans enable you to obtain pledge stocks that you own in a public traded entity for immediate liquidity and funding.
Funds can be used for working capital, recapitalising the company or for personal investment.
At Equity Capital we do not limit how funds should be used.
4. How Much Can I Loan?
Equity Capital can provide financing from $500,000 USD to $50,000,000 USD.
Depending on the underlying share used as collateral, the LTV or Loan to Value can range from 45% to 70% of the value of the share pledged.
For example
If you own 1 million shares of ticker ABC, trading at $10, you will be able to obtain between $4.5million and $7million, subject to risk assessment.
5. How Long Can I Loan For?
Equity Capital can structure loan programs between 1 to 5 years on a renewable basis.
The applicant can opt for interest only payments on a monthly basis, or principle plus interest payments.
We are also able to structure customized payment plans according to your requirements such as quarterly or semi-annual payments
6. How Fast Will I Be Able To Receive Funds?
We are able to give you an in-principle approval within 24 hours and an confirmed offer within 2 working days.
The assessment process is quick and easy with no documentation required other than the loan amount requested, the amount of shares and the ticker name for collateralized stock loans.
For example, if you would like to see if your stock can be used for pledge, simply let us know
- Amount of Shares
- Loan Amount Required
- Ticker Name
And we will be able to let you know the amount approved within 24 hours, but most likely sooner
7. How Will I Receive The Funds?
Once you have signed our offer letter the following steps take place
- Offer Letter Signed
- Custodian Forms and KYC are sent to you to sign and complete
- Custodian Forms and KYC is completed and returned
- Within 3- 5 working days a custodian account is opened for you to make the transfer of the securities you wish to pledge
- Securities are transferred to the custodian and the loan amount is simultaneously transferred via a Delivery –versus-Payment Process (DvP)
- The loan transaction is now completed and payment is made according to the payment schedule
8. What Is Delivery Versus Payment?
Delivery versus payment is a Delivery versus payment (DVP) is a securities industry method that guarantees the transfer of securities only happens after payment has been made. This means that you get the money as soon as you transfer the securities to the custodian. This ensures that the loan transaction swiftly as the custodian is a neutral third party.
We provide funding and process transactions for securities and equities traded on the following exchanges:
| Country | Exchange | Exchange Abbreviation |
|---|---|---|
| Athens | Athens Stock Exchange | ASE |
| Australia | Australian Securities Exchange | ASX |
| China | Shanghai Stock Exchange | SSE |
| China | Shenzhen Stock Exchange | SZSE |
| Canada | Canadian National Stock Exchange | CNSX |
| Canada | Toronto Stock Exchange | TSX |
| European Union EU | NYSE Euronext | NYX |
| Germany | Frankfurt Stock Exchange | FWB |
| Hong Kong | Hong Kong Stock Exchange | HKEX |
| Indonesia | Indonesia Stock Exchange | IDX |
| Japan | Tokyo Stock Exchange | TSE |
| Malaysia | Bursa Malaysia | KLSE |
| Philippines | Philippine Stock Exchange | PSE |
| South Korea | Korea Exchange | KRX |
| Singapore | Singapore Exchange | SGX |
| Thailand | Stock Exchange of Thailand | SET |
| Turkey | The Borsa Istanbul | BIST |
| Taiwan | Taiwan Stock Exchange | TSEC |
| United Kingdom | London Stock Exchange | LSE |
| Israel | Tel Aviv Stock Exchange | TASE |
Summary
Benefits of a non recourse stock loan lets you obtain financing from assets that you currently hold and are unable to liquidate.
Flexible payment terms can be structured according to your requirements and the process is quick and simple.
No personal guarantees are required and the process can be completed within 7 to 14 business days.
About Equity Capital
Equity Capital Solutions Pte Ltd is a privately held liquidity solutions provider based in Singapore. We enable businesses and publicly traded companies to obtain capital quickly and easily.
We are a team of ex-bankers with strong capital markets experience and we specialise in structuring private equity, asset based lending and corporate finance transactions internationally and in South East Asia.
Types of Equity Financing
Private Property
Gear Up
Vessel
Financing
Machine
Financing
Business owners who own a Private or Commercial property can opt for the private property gear up loan. The proceeds are pledged to the business and the business is able to use it for cashflow or business operations. The payment is also very flexible with schemes such as interest payments only. This allows business owners more capital for deployment.
Vessel Financing allows business owners to pledge the vessel they own in return for financing. This process might take slightly longer as there’s a full range of due diligence to be done. This is a viable option for ship or vessel owners to take advantage of their assets.
If the business has machinery or equipment with value that belongs to the business they can pledge it in return for an LTV on the value of the asset. Typically the LTV can be up to 60-70% of the machine’s value. Businesses can thus make use of their physical machines for financing to grow their business further.
Floor Stock
Financing
Share Pledge
Financing
Stock Pledge
Financing
If you deal in automobiles, we can structure floor stock financing for you. This allows you to finance the stock in your showroom allowing more of your clients to look at available vehicles. This helps dealers allowing their customers to try out more ready models and has an effect of increasing sales on –site.
For Listed Companies, Share Pledge Financing can be a viable option. The Company or Significant Shareholders pledges the shares they own and in return obtains financing on a percentage or LTV( Loan-To-Value) of the current Share Price
Similar to Share Pledge Financing, Stock Pledge Financing can be a viable option. The Company or Significant Shareholders pledges the shares they own and in return obtains financing on a percentage or LTV( Loan-To-Value) of the current Share Price
Stock/Share
Loans
For listed companies that require capital – their majority shareholders can pledge a % of the shares held by them in return for an LTV on their value of their shares. The process is fast and easy and allows listed companies to generate capital quickly and easily.
Why have Equity Financing?
For Cashflow
All busineses needs working capital to enable they day to day operations. If busineses do not have enough cashflow, it could mean a breakdown in operations, such as missing payroll and not paying suppliers or bills. Having the necessary cashflow enables you to carry out business operations smoothly and without interruption.
Equity Can help raise the cashflow needed by structuring a business loan for you. With our qualified specialists , the application is quick and simple and we do all the work between you and the banks. Upon an enquiry, we usually respond within 3-4 hours, so you can obtain financing quickly and easily.
Require a loan? Here’s why you should choose equity
Equity Financing can be used to purchase stocks and goods for upcoming projects. For example, a construction company has just been awarded a project for a building and the firm now requires to purchase the necessary equipment and materials needed. In addition, manpower costs also have to be paid for.
With the assistance of Equity Financing , this construction company can now carry out the project while servicing a low monthly installment for the business loan. Once the project has been completed, the business can decide to pay off the loan.
Equity Can help apply for a business loan for you with all banks in Singapore. With our qualified specialists , the application is quick and simple and we do all the work between you and the banks. Upon an enquiry, we usually respond within 3-4 hours, so you can obtain financing quickly and easily.
What is the Criteria to obtain Equity Financing in Singapore?
Equity Financing can be tricky, often than not, the business owner is an expert in all things related to his business. However, when it comes to financing, SME’s are unfamiliar navigating the different criteria and other requirements that the banks require.
Equity Can help cut through the red tape quickly and easily . With our experienced loan specialists , the application is quick and simple and we do all the work between you and the banks. Upon an enquiry, we usually respond within 3-4 hours, so you can obtain financing quickly and easily.
What is the best Bank To apply for Equity Financing?
There are many banks in Singapore offering equity finance. In fact, each bank has their own set of different criteria for the same product. This sometimes can be confusing for business owners.
Equity can help apply for equity financing for you quickly and easily and directly with the banks. We are familiar with the criteria and can get you financing. seamlessly and without all the red tape so you can concentrate on growing your business.
How It Works
- Make a Free Enquiry.
- An Equity financing specialist will reach out to you for some simple details.
- We work together with you for the documentation.
- You relax and we do the heavy lifting for you.
- We contact you when its approved for signing down the loan.
