EdgeWork Capital is experienced in providing capital for owners of publicly traded companies, privately held companies, and large portfolios of both securities, and fixed income instruments across a wide range of sectors.
Our facilities allow your securities, including those held in treasury, to go to work for you. Without liquidating your asset the inherent value can be accessed in a discreet, fluid, efficient manner.
Securities-backed financing is the practice of using marketable securities or other financial instruments as collateral for a loan. A portion of your securities are pledged to the lender, or the lender may assume custody of your assets in the interim as protection from default. In return, the lender advances a loan for you, using your securities as collateral. You can use this loan at any time during a pre-agreed period. You make the interest payments as agreed and stay within the covenants of your loan agreement. Once the loan is repaid, the pledge over the assets is removed.
Securities-backed lending can be very attractive from an efficiency perspective. Especially when compared to more “mainstream” lending (i.e., consumer loans, credit cards, traditional bank loans, etc.), securities-backed lending can be very cost-effective. It is often much cheaper than other types of borrowing in terms of comparable interest rates. The interest rate you’ll pay for securities-backed lending is typically tied to LIBOR or a standard base rate. The lender adds its margin on top of this. Interest rates will depend on your securities, your financial situation and the overall risk of the transaction. Securities-backed lending is granted on an individual basis, and as a result, there’s no standard interest rate; however, current rates range from 2%-6%, although there are cases where the interest rates will fall outside of this bracket. Terms usually range from 3-5 year terms. These can be either single stocks or portfolios.
We also provide a variety of other capital solutions:
Intellectual Property (IP) Financing
Unlisted Securities loans (For privately held companies)
And Corporate & Personal Aircraft
If a significant portion of your net worth is tied up in pre-IPO, liquidity can be challenging. EWC can provide owners of these securities with liquidity against pre-IPO stock that provide attractive financing solutions for you.
Transparency. Dedication. Results.
At EdgeWork Capital, our strength lies in the integrity and commitment of our team. We will always put the interests of our clients ahead of our own, ensuring successful business relationships and opportunities for the future.
Made up of professionals with diverse backgrounds and skill sets, our dedicated experts will provide you with the resources and experience you need.