Frequently Asked Questions
Institutional clarity on structured equity financing, risk mitigation, and compliance protocols.
What does "100% Non-Recourse" mean in practice if the stock price collapses?
Non-recourse structure provides absolute downside protection for the borrower. If the pledged public equities or digital assets experience a severe market downturn or collapse to zero, the lender’s only avenue of recovery is strictly limited to the collateral itself. Neither SBL nor our private credit partners can pursue your personal funds, corporate treasuries, real estate, or any other assets. Your liability is legally capped at the pledged assets.
Will my market identity or transaction details be disclosed to the public exchange?
Absolute discretion is our core operational mandate. All preliminary scopes, risk assessments, and asset reviews are executed under strict non-disclosure protocols. The transaction is conducted privately within our institutional network. Because the financing is structured as a private loan repository rather than an open-market block trade, it does not trigger standard public disclosure requirements or insider-selling alerts in most jurisdictions, preventing any adverse impact on your stock's market pricing.
Who retains the ownership of the shares and the voting rights during the loan term?
You remain the definitive legal owner of the assets. The shares are simply transferred into a segregated, multi-regulated custodian account (Tier-1 international prime brokers) as collateral. The funding partner acts as the pledgee, but they cannot arbitrarily short, hedge, or rehypothecate your assets unless a specific contract breach occurs. Regarding voting rights, these are fully negotiable during the term-sheet phase and can be maintained depending on the concentration of your holding.
What happens to corporate actions, stock splits, and dividend distributions?
All economic benefits generated by the underlying collateral remain 100% yours. Any dividends, interest payments, or token distributions generated during the financing term are collected inside the secure custodian account and are either passed directly to you or utilized to offset your annual fixed interest payments, depending on your preferred treasury structure. Stock splits or corporate reorganizations are mirrored inside the custodian repository with zero disruption to the financing framework.
How does the margin call mechanism work if the asset value drops significantly?
Unlike volatile retail brokerage margin accounts, our institutional private credit lines feature highly structured, predictable buffer zones. If the asset’s Loan-to-Value (LTV) ratio breaches a pre-negotiated threshold due to market corrections, you are provided with a structured cure period (typically 3 to 5 business days). You have full flexibility to resolve the breach by either reducing the loan balance, pledging additional equities/cash, or simply electing to walk away from the transaction, allowing the fund to liquidate the collateral with zero further recourse to you.
What type of assets qualify for financing, and what is the minimum ticket size?
Our structured network specializes in high-volume, concentrated positions that traditional banks routinely reject. This includes mid-cap and large-cap equities listed on major global exchanges (US, Europe, Asia-Pacific), restricted stock holdings (Rule 144), pre-IPO institutional shares, and top-tier high-liquidity digital tokens. Our strict minimum portfolio evaluation requirement is $1,000,000 USD or its currency equivalent. We do not service retail portfolios or micro-cap penny stocks with low ADV (Average Daily Volume).
How is the interest payment structured, and are there any upfront management fees?
Our private credit network operates with absolute financial transparency. There are zero upfront structuring fees, application retainers, or hidden administrative costs. The fixed annual interest rate (ranging from 2% to 5%) is locked for the entire duration of the loan. Depending on your corporate liquidity strategy, interest payments can be structured on a quarterly or semi-annual basis, or automatically offset by the dividend yields generated by your underlying collateral within the custodian account.
Can the loan framework accommodate restricted stock, lock-up periods, or affiliate holdings?
Yes. Traditional institutional lenders routinely reject equities subject to regulatory lock-ups or executive affiliate restrictions. Our partners' customized legal architecture is specifically designed to handle complex regulatory environments, including SEC Rule 144 restricted stock, corporate insider allocations, and concentrated founder holdings. The underwriting process for restricted assets includes a specialized legal review to ensure full compliance with exchange regulations and local capital controls.