Ec agent training

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New Agent Training

Text of Ec agent training

  • 1. EquitiesCapital-- Independent Agent Training Our goal is to enhance the ability to meet the financial needs of borrowers and financing professionals while building long-lasting strategic alliances for continued ethical business relationships. founded 2008 Welcome

2. Introduction-- Equities Capital copyright 2008-2013 Welcome to the independent agent training presentation. This presentation should provide you with just about all of the information you will need to understand and present how securities-based lending works and how it can help your clients with obtaining funds using their stocks as collateral. We will also provide some marketing information and resources to help you. You may proceed through this presentation at your own pace. We have provided links on some of these slides that will take you to a web page that will provide more information than can be presented in the space provided. 3. What We Do-- We simply offer securities-based loan programs. This program allows the holders of stocks and other securities to be used as collateral to obtain a loan that can be used for any purpose. This type of lending has been around for over 50 years. Since 2008 we have been offering this product and it is easy to explain and has a very high income potential. Equities Capital is the Marketing Arm/Broker Liaison of the lender and we work very closely with them. We are here to assist you with product information and marketing materials in order for you to effectively promote this product. Equities Capital copyright 2008-2013 4. Simple-- Stock loans are easy to understand and simple to explain to potential clients. You do not need a loan officer or broker license or a financial advisor certification or any other type of license in order to market this program. You will be able to market in all 50 states. Even internationally. All we need from you is information on the stocks they wish to pledge. (The stock symbol(s) and number of shares. Once we have that information we will quickly get a quote for your client. If they wish to move forward a Loan Commitment is issued. We move to contracts and funding. We do the loan processing, closing and funding. Funding of the loan can be as soon as 2 weeks. You are paid at the time of funding. Equities Capital copyright 2008-2013 5. Loan Purposes-- How securities-based funding is utilized to solve a need for financing. Refinance an existing home loan Purchase investment properties Buying foreclosed properties New home construction Buying or refinancing commercial loans Investing Business financing Foreign nationals wishing to purchase real estate in the U.S. No restrictions on the use of the funds. (Except that it cannot be used to purchase other securities on margin). Equities Capital copyright 2008-2013 6. Who Can Benefit From A Stock Loan-- Just about anyone who owns stocks or other securities that would like to utilize the dormant asset to generate tax-free cash without income or credit qualifying. This lending program may be utilized to solve a number of financial situations when other types of financing just may not work. Equities Capital copyright 2008-2013 7. Agent Compensation -- Our compensation package is set at .50 point to you on every closed transaction. It is considered a marketing fee paid directly to you or your company. On the securities loans there are no lenders fees, points, closing costs or any other fees associated with the transaction. On the securities line of credit there is a 1.50 point Origination Fee with .50 point paid to you. Most transactions are of the loan nature so you can market the product as a true No- Cost loan. Equities Capital copyright 2008-2013 8. Past Closings and Commissions Paid-- Loan Amount: $2,725,000 Agent Compensation: $40,875.00 Line Amount: $100,000 Agent Compensation: $2,000.00 Loan Amount: $780,000 Agent Compensation: $15,600.00 Loan Amount: $119,800 Agent Compensation: $1,995.00 Loan Amount: $505,000 Agent Compensation: $12,625.00 Loan Amount: $627,000 Agent Compensation: $14,107.00 Loan Amount: $912,000 Agent Compensation: $13,680.00 Loan Amount: $600,000 Agent Compensation: $9,3950.00 Equities Capital copyright 2008-2013 9. Product Highlights & Benefits-- Low fixed and adjustable interest rates No closing costs or lender fees (fixed rate loan only) (low fee for the Lines of Credit) No upfront fees No credit qualifying No income qualifying Non-personal recourse loan. The only collateral are the pledged securities. Funds may be used for any purpose including personal or business use. Loans available for up to 80% of the securities value. The borrower receives credit for dividends and upside market appreciation. Quick Fundings - usually in a matter of days. Equities Capital copyright 2008-2013 10. 2 Types of Stock Loans-- Equities Capital copyright 2008-2013 There are two types of stock loans that are offered. Loan Line of Credit Both types use stocks as collateral but each have different underwriting criteria and lending guidelines. It is very important to keep in mind the distinction of these two when speaking with the client. As you move through this presentation please keep in mind if you are reading about a Loan or Line of Credit. 11. Loan Overview-- Equities Capital copyright 2008-2013 - Fixed interest rates between 2.5% and 4.5% - Interest Only quarterly loan payments - Loan terms of 3, 5, 7, or 10 years - No closing costs - No upfront fees - No credit check - No income verification - Funds may be used for any purpose including personal or business use - Non-personal recourse loan. The only collateral are the pledged stocks. - Loans available for up to 80% of the total of the stocks value - No Pre-Payment Penalty - Quick Fundings - usually in a matter of days For more complete information go to www.equitiescapital.com/Guidelines-SBL.htm 12. Line of Credit Overview-- Equities Capital copyright 2008-2013 - Adjustable interest rates between 2.5% and 5.5% - Interest Only monthly loan payments - This is a line of credit perpetual term until paid in full - 1.50 Origination Fee - No upfront fees - No credit check - No income verification - Funds may be used for any purpose including personal or business use - Non-personal recourse loan. The only collateral are the pledged stocks. - Loans available for up to 70% of the total of the stocks value - No Pre-Payment Penalty - Quick Fundings - usually in a matter of days For more complete information go to www.equitiescapital.com/Guidelines-SBLOC.htm 13. Product Comparison-- Equities Capital copyright 2008-2013 For a comparison of the two types of products go to www.equitiescapital.com/ProgramComparison.htm This chart is very helpful in distinguishing the slight differences between the programs. 14. Acceptable Collateral-- Equities Capital copyright 2008-2013 The stocks that your client may wish to pledge must be publicly and actively traded . This means they must be listed on public stock exchange (NYSE, etc) and there must be active trading volume ((Minimum trading volume of at least $50,000 a day) on the stocks to be pledged. There are two ways to see if the stocks your client has are acceptable collateral. 1. Have the client provide their latest brokerage account statement (we suggest they black out the account number prior to forwarding it to you). Forward the statement to us and we will have the lenders evaluate it and then advise you. 2. If they only have one or two stock positions you can evaluate quickly on your own. The next slide will guide you through on how that can be done. 15. How to Check -- Equities Capital copyright 2008-2013 To check simply go to www. http://finance.yahoo.com, enter the symbol of the stock in the Look Up box and then look at the Avg Vol (3m). Multiply that by the price per share (shown in bold) and that will give you the average daily volume. If this number is below $50,000 or there is no Avg Vol (3m) then it will not qualify for either program. If the stock symbol does not show up in the Look Up box then you will need to forward the clients brokerage statement to us for further evaluation. 16. Loan vs. Line Collateral Qualifying-- Equities Capital copyright 2008-2013 The minimum stock price for the loan program is $.05 a share. The minimum stock price for the line of credit program is $10 a share ($5.00 a share for mutual funds). 17. What Does Not Qualify Equities Capital copyright 2008-2013 401(k)'s, IRA's or any restricted retirement fund Money Market Accounts CDs Annuities Gold or silver mines Commodities CMO's SBLC's Bank Guarantees or Warranties Private notes or private bonds Bonds that are past maturity Bearer Bonds Variable Structure Notes 18. Simple Steps-- Equities Capital copyright 2008-2013 Securities information is provided from the borrower. You may complete the Quote Form listing the names of securities, their stock symbol along with the number of shares or you may forward a copy of the client's recent monthly statement The loan-to-value ratio and the interest rate are determined by what securities are pledged. The more liquid and actively traded the securities are the higher the loan-to- value ratio and the lower the interest rate. A Term Sheet (Loan Commitment) is issued for review by the client. Borrower reviews and approves the Term Sheet/Loan Commitment. A conference call is placed with the borrower to answer any questions and to insure the borrower understands the complete loan transaction. The loan documents are forwarded to the borrower for signatures. Arrangements are made for the quick transfer of the securities to the lender. The loan is then disbursed based upon the loan-to-value previously agreed upon. Borrower makes interest-only payments. Borrower may pay off the loan at any time without penalty and the stocks that were originally pledge