You might ask yourself – what’s the difference in just going to your brokerage house and obtaining a “margin loan” instead of utilizing ICON’s lending program?
A securities based loan is NOT the same as a margin account loan.
ICON’s loans have significant advantages over margin loans.
Some excellent reasons why ICON’s Securities-Based Lending may be a better match for you and your particular lending needs.
1. Typical Margin Loan – FULL Recourse loans — additional liability, fees, and penalties may be assessed.
ICON Securities Loan – 100% NON Recourse with NO personal guarantee or liability; you may walk away from an ICON loan with no penalties & NO negative credit reporting.
2. Typical Margin Loan – For many brokerage houses, a credit requirement has been added as a qualifying factor.
ICON Securities Loan – NO credit or income check.
3. Typical Margin Loan – 50% LTV ratio
ICON Securities Loan – Up to 80% LTV ratio; depending upon securities’ trading volume and liquidity.
4. Typical Margin Loan – Variable higher interest rates (typically 5% to 8% ARM’s)
ICON Securities Loan – Fixed lower interest rates from 2% to 5%
5. Typical Margin Loan – Not all NASDAQ, AMEX, NYSE stocks or securities may be “marginable.”
ICON Securities Loan – Loans available against all types of securities that qualify (including OTC:BB, “pink sheets”, and certain foreign exchanges).
6. Typical Margin Loan – Not allowed to lend on stocks valued at less than $10.00 per share.
ICON Securities Loan – Loans offered against any share price.
7. Typical Margin Loan – If the share price drops below 75 percent to 80 percent of original total stock value, a margin call is initiated and may you normally have only one day to cure the default, which may result in the unwanted sale of your securities.
ICON Securities Loan – ICON has a flexible process to “cure” your loan default. ICON’s “call” is set at 80% of the loan amount (approximately 65% of the stock value) and we offer 5 days to cure the default instead of only one day. Since ICON’s loans are non-recourse loans, if the borrower cannot cure the loan default they may simply walk away.
ICON Commercial Lending 