Stock to Cash utilizes a unique 90% non callable and non recourse loan structure. This means the investor receives 90% of the hedge value of the portfolio upfront in cash without any further obligation to repay either the loan principal or any interest that accrues along the way.
At the end of what typically is a 3 year loan period, the investor has the option to recover the shares used as collateral by paying back the loan with accrued interest. Alternatively, the investor may sell the shares to pay back the loan and keep the difference in cash or shares, or refinance the loan and move forward with a new transaction. In case the investor’s collateral portfolio is worth less than what is owed for the loan, the investor always have the right to default, forfeit the shares, and keep the 90% cash that was received plus the appreciation thereof.

Typical Situations For Using The Program

Investor who is bullish on his own portfolio, or having a low cost basis needs liquidity but does not wish to sell.

Investor who understands the need for life insurance, annuities, estate planning,
retirement planning or has other important financial goals, but has insufficient cash flow to fund these objectives.

Investor is concerned about the risk of the market, he/she can immediately borrow
90%. Loan proceeds are reinvested into a guaranteed instrument such as a fixed annuity.

Investor wants to set up a charitable remainder trust (CRT), but does not want to relinquish the upside potential of his stock portfolio.

Investor wants to own real estate and invest in the stock market at the same time. Investor can borrow against stocks to purchase real estate or other startup venture.
Investor receives company stock as a part of a company retirement plan and do not wish to sell for either emotional reasons, or if the plan qualifies for NUA (net unrealized appreciation), the investor keeps his/her shares and is able to diversify the portfolio at the same time.