Securities-Based Lending Offers Domestic and Foreign National Buyers of Real Estate a Simple, Flexible, Non-Recourse Lending Alternative Without Liquidating the Borrower's Assets

ANNAPOLIS, Md., Sept. 27 /PRNewswire/ -- Securities Based Funding, Inc. announces a unique financing advantage to borrowers against the value of their securities portfolio at below-market, fixed-rate loans ranging from 2.5% to 4.5%. These non-recourse loans will assist domestic and international buyers, sellers and developers of properties worldwide. The loan proceeds can be used for any purpose, except to carry securities in a margin account.

Despite the credit crunch, and while access to liquidity through traditional capital markets remains difficult in today's uncertain economy, security-based loans fill gaps created by the credit crunch. Securities-based loans are superior in all aspects to margin loans and should not be confused with margin loans. A security-based loan offers residential and commercial real estate owners and developers, who are being frozen out of the market by their banks and traditional sources of financing, a viable alternative.

Lending against the borrower's securities portfolio eliminates the gaps created by the credit crunch and provides many other unique financing advantages over traditional mortgage, margin loans or cash, such as:

• 100% non-recourse.

• Below-market, fixed-rate loans. Rates are based on the performance of the security not traditional mortgage indices.

• Quarterly interest-only payments which are offset by any declared interest/dividend.

• Borrower retains all beneficial interest in pledged securities.

• Loan to securities values ranging from 35% up to 80%. The more liquid and actively traded, the higher the LTV.

• No appraisals, credit reports, project approvals or questionnaires.

• Not income- or credit-driven.

• No maximum loan amount (100k min.).

• Simple application process; consists only of a review of the most recent portfolio statement(s).

Eligible securities are publicly trades stocks, bonds, tradable mutual funds, unit investment and real estate investment trusts, as well as foreign positions on international exchanges. Ineligible securities are securities owned in a privately held company and securities held in retirement accounts.

The borrower retains all upside market appreciation and receives any dividends or interest to which the securities are entitled. The LTV is made against the value of the pledged securities. This means that you may be able to finance 100% of the purchase price whether it is a primary, second home or investment property. The rate is dependent on the quality of the pledged securities. With regards to the safety of the funds, the lender has a 100% record of repatriating all pledged securities upon repayment of the loan at loan maturity.

Securities Based Funding, Inc. represents a full-service, private, non-purpose, direct lender that specializes in securities-based lending with investors in need of prompt funding. Terms are based on the evaluation of the risk and future performance associated with the stocks, bonds or U.S. Treasuries to be pledged as collateral to maximize and maintain complete yet proprietary flexibility of the equity-loan process.

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SOURCE Securities Based Funding, Inc.