Global Bancorp makes stock loans for any purpose. As long as the shares you own are unrestricted and free-trading they may be used as a foundation for a loan from Global.
Global Bancorp has designed a system which allows stockholders in over 85% of publicly traded companies to take advantage of their shares' equity, while retaining many of the benefits of ownership.
LOAN COMPARISON CHART
| Margin Loan | Collar Loan | Global Stock Loan® | |
| Interest Rate | 6-8% | 6-9% | 3-8% |
| Features | 50% LTV Recourse Callable | 70-90% LTV Interest Recourse / Non-Recourse Principal Non-Recourse Upside Cap | 85% LTV Non-Callable Non-Recourse All interest accrues Dividends credited to reduce interest |
| Benefits | Convenience Competitive Interest Rates Ease of Repayment Wide Range of Uses | Market Protection Liquidity Tax Savings | Market Protection Liquidity Growth Tax Savings |
| Bullish Market | Margin allows you the opportunity for more profit than if you investon a cash only basis. | The client would loose upside appreciation in the stock due to the cap. | If, at the end of the loan term, the price of the underlying collateralized shares has increased over and above the loan balance, the borrower will choose to payback the loan and recover his stock position at its appreciated value. |
| Bearish Market | Client purchased stock with borrowed money. The stock lost value yet the client must still pay back the borrowed funds plus accrued interest. | The client would have protected himself against market downturn. | Client can walk away from the principal and accrued interest and keep the 85% reinvested proceeds. |
| Risks | Callable Increases Market Risk Broker may sell securities Downside not limited to just collateral value. | Cap locked in potential appreciation loss Client not able to access stock until end of term Client may owe a small capital gains tax in the event of a walk-away. | Client not able to access stock until the end of the loan term. Client may owe a small capital gains tax in the event of a walk-away. |
| Worst Case Scenario | It is possible that all your shares could be sold by the broker, leaving you with no shares yet still owing money. | In the event that the stock shot up in value, the client would be giving up all the stock appreciation above the cap. In the event the stock depreciates client walks away and pays a capital gains tax. | Client walks away from principal and interest. The client will always have the 85% plus whatever it grows to no matter what happens to the stock. |