Asset Based Lending

Secureline

Leverage...Don’t Liquidate! SecureLine is a wholesale securities portfolio loan program that does not require the transfer of title/ownership to the lender as a prerequisite to funding. That’s correct…The Client will retain full ownership and access to securities throughout the term of the loan as the sole owner of the account, and will continue to receive all of the “upside benefits” (i.e. dividends, appreciation, and interest).  SecureLine is a fast, low-cost credit-line, administered by major U.S. brokerage firms that use your securities as collateral; specifically designed to provide expedited funding for various purposes, including, but not limited to, buying commercial or residential real estate, buying or taking over a franchise, obtaining working capital for your business, and any other funding needs that are required, such as sending your kids to college.

Our clients find that because this is a non-recourse program, meaning the securities that are pledged for the loan is the only liability to the Client, which makes our SecureLine program one of the most flexible and secure funding options in today’s market, versus traditional lending programs.  So I know you’re asking yourself, how is this program different from a margin loan? Well, one of the keys differentials is that a margin loan is limited by design for the purchase of more shares of (usually) the same stock using the brokerage's money. It is not designed, nor intended to be cash that you use for, say, the purchase of a business, the fulfillment of your working capital needs, or even buying real estate…Here is a recap of reasons why Clients love our SecureLine program. 
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international secureline

We are happy to announce that we accept securities from most foreign markets. Some general guidelines to consider is that a share price must be $5 or greater, a strong demand and volume for the securities, multiple buyers and sellers in the market, and most importantly, the company’s stock has a market cap of at least $250 million. If you or your client has a foreign securities portfolio that they would like to pledge, here are a few things that you may want to keep in mind…

1) The value of the client’s foreign securities portfolio should be at least $1.5MM
2) There should be a diverse and robust buying and selling of the securities, (make sure that they are not being “match traded” to pump up perceived value by a small number of individuals).
3) Finally, make sure that you or your client is willing to open his/her account at the major U.S. based financial institution that is providing the credit-line. …Last, but not least, the Client should be made aware that the foreign securities will need to be transferred into the Client’s new account that will be held with the financial institution where the credit line is opened; and of course assistance will be provided to handle the transfer of the securities…Leave the “Heavy Lifting” to the professionals!

So complete our two page application today, and we will have your no-cost, no-obligation term sheet to you by tomorrow.  In it, we will explain your credit-line approval amount, along with the rate, terms, and which major U.S. financial institution will be opening your credit-line. Also, one of the greatest benefits of our SecureLine program is that as the value of your stock grows, so does your available line of credit.  So what are you waiting for, go ahead and apply!

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Luxline

LuxLine™ can be essentially a short-term or long-term version of the SecureLine credit line/loan program with a twist! Instead of your licensed lending institution lending against your stocks, bonds, or mutual funds, your lender will use your luxury goods, e.g.: Jewelry, Gemstones, Sports Cars, Paintings, Gold, Silver, Platinum, or other similar items — to guarantee your loan.

Both versions of the program — like all Criss-Cross Financial's programs — offers fully licensed institutional security, and very fast access.  With the short-term version of LuxLine™, your collateral remains safe and secured at one of several fully licensed U. S. facilities designed for this purpose while your loan remains in effect, and with the long-term version you maintain possession of your pledged asset.

LuxLine™ - Long Term. This program is an asset-based loan administered by a major U. S. brokerage/banking institution's Wealth Management Division in which the lending institution will ask the key question: How do you propose to repay your loan?

Whereas in the Short-Term loan scenario your lender will not mind taking possession of the asset if you were to default or were willing to sacrifice if as repayment of your loan, in the case of our Long-Term LuxLine™ the lending institution does not seek to hold or possess the asset if at all possible. For this reason, credit is required and a clear, logical, and valid method of repayment must be part of the application process. Your asset for example, a fine art painting will be, in effect, the primary asset backing a loan that you also guarantee via your good credit. Unlike our Short-Term LuxLine™, our Long-Term LuxLine™ may be for up 20 years.

One of the key differences between the two programs is how interest is calculated. Our Short-Term LuxLine™ is monthly based (MPR), making it relatively expensive if viewed on an annualized basis. Our Long-Term LuxLine™ is on an annual basis (APR), making the latter significantly less expensive, but qualifying requires a higher standard with good credit and a Personal Financial Statement.

Our Short-Term LuxLine™ is therefore best for clients with a quick need for relatively quick liquidity "off the books", that is, in a loan that does not involve credit being pulled or reported. Our Short-Term LuxLine™ does not usually make financial sense beyond the 6 month period for other applications, but can be a very suitable solution for situations such as when there is a bridge-loan type financial requirement, or where a client's assets are tied up elsewhere and there is a deadline; or when the client would not like to tie-up their existing credit (since credit does not factor into the Short-Term loan).

Our Long-Term LuxLine™ is more suitable for conventional financing applications, for example real estate, tax consolidation, business expansion, or other investments. Our Long-Term LuxLine™ has higher standards for acceptability, but the program is ideal for cases where cash is needed over an extended period of time.

To see this in numbers, a 2% per month Short-Term LuxLine™ will be approximately 12% if extrapolated over the maximum loan term of six months. By contrast, a 2% APR Long-Term LuxLine™ would be in effect 0.1% per month (a twelfth of 2% per year), saving substantially. In addition, your Long-Term LuxLine™ will allow a wider range of storage and vaulting in more localized locations for your asset(s), whereas the Short-Term SecureLine must be vaulted/stored in their New York facility only.

Each program comes with different advantages and disadvantages, so we urge our clients to choose carefully.Since your asset guarantees your financing, it can also be used to pay off your loan by sacrificing the asset to the lender if at any time you wish to do so.

What You Will Need for a "Soft Quote" LuxLine™ Term Sheet

      1. Documentation to certify the authenticity of the asset. We are flexible, but it must be legitimate.
      2. Documentation to verify your direct ownership (beneficial or third-party ownership not permitted)
      3. A clear picture ID (Passport or Driver's License) Personal Financial Statement (if applying under the long-term program, or if the client would like the best rate option under the short-term
      4. program) All of the above attached to our application form, here.

What Will Occur After You Sign Your No-Obligation Term Sheet

After you sign your term sheet via our digital Verisign/Echosign "Two Click" System, we will release your Lender Disclosure Letter and arrange your initial conference call with your licensed lending institution. During this call, the lender's background, details of the program and any questions you may have will be answered. You may be asked about your intended use of funds, and how you intend to repay the line as well. If you wish to proceed, you will indicate this to your licensed lender advisor.

Your steps will be as follows at this stage (under the Short-Term LuxLine™ Option):

        1. You will transport your assets to your licensed lender in New York, via one of the methods noted below, fully secured and insured, for professional final appraisal.
        2. Your loan agreement will be handed to you and if you choose to sign, your loan cash will be provided to you, directly. You will be billed for the interest monthly until the loan is repaid.
        3. Your assets receive expert, professional, licensed handling and appraisal. In addition to working for and with your fully licensed lending institution, your lender's appraisers have backgrounds at the leading auction houses in the U. S. and abroad, including Sotheby's, Christie's, Bonham's and Phillips. Each have strong professional connections and a broad network of contacts over a variety of asset specializations ensuring accurate and timely evaluation for your financing. All hold licensing and membership in good standing with their respective professional associations, including the Gemological Institute of America, the Appraisers Association of American Valuers, and The Royal Institute of Chartered Surveyors, among others.

Security is naturally paramount for any asset-based lending of this type, and we at Criss-Cross Financial are pleased to say that your licensed LuxLine™ lender has all that you'd expect and more.

When we first began considering adding this type of facility for our clients, we required that our lenders would provide comprehensive, complete insurance and protection of our clients' assets from start to finish. We also expected top notch due diligence to ensure that all assets were rightfully and legally owned by our clients. We are happy to say that LuxLine™ delivers both levels of assurance. Our clients are carefully screened, but are also protected in several overlapping ways from the moment their assets leave their hands until they are securely returned when the loan is no longer needed after repayment of any outstanding balance.

Security at this level naturally also requires solid and established institutional insurance, and we are pleased to say that our chosen lending partner offers comprehensive insurance based on the fair market value of the assets (and often higher for safety), provided both via the lender's licensed courier and storage partners as well as by insurance underwritten through the respected firm LLoyds of London. These policies are always available to our clients for review prior to transfer of the asset if they wish.

Here are a few examples of how this insurance operates: 

  • For smaller, less valuable items that you choose to send to us using the FedEx label using FedEx's "same-day" service, and these are insured up to $100,000.
  • For multi-item collections of assets, such as a small jewelry collection, your lender's appraisers will put together a total valuation for loan purposes and these are insured up to $500,000

The lender's appraisers may on some occasions come to the client's home or the asset storage site to conduct the appraisal, and if the client chooses to permit the appraiser to take the asset(s) to their formal valuation center they are insured up to $500,000

For larger or more valuable items (e.g., dry-docked yachts, GIA-certified gems), the lender will establish customized insurance suited to that asset.

Security for the LuxLine™ program doesn't stop with insurance, however. We would not agree to offer this program to Criss-Cross Financial clients if onsite security did not meet the highest standards as well. Again, we are pleased to say they do:

All assets that arrive at the lender's New York facility are recorded using CCTV, immediately barcoded and entered into multiple secured and backed databases with a unique ID number, and photographed.

Any Criss-Cross Financial client asset is immediately stored in one of several highly secured vaults onsite with 24/7 multilevel security, or other top-tier security facilities (via lender's partnership with Citibank and Malca-Amit).

Art and antiques are stored in highly secured, climate-controlled vaults onsite or with the highly regarded firm of Day & Meyer in New York, the largest and most respected storage and security firms for fine art and related assets that serves the majority of top-tier auction galleries, art dealers, and high-end collectors via their fire-proof vaults in Manhattan, New York. Your lender also provides further security via well-regarded firms such as CFASS, Cadogan Tate, The Fortress and Peak Fine Art.  Your lender spares no expense to secure your fine autos either. Exotic Classics, Top Store and Sphere Motorsports are your lender's storage and security partners. Each new vehicle insured a fair market value, coded, and photographed upon arrival.  Yachts ($250,000 in value and up) are accepted if client is willing to dry-dock the vessel in secure facilities in New York, or the client may maintain possession of the asset under the long-term option.

  • LuxLine™ requires no credit checks, only a clear establishment of title and right to the ownership of the asset an evaluation of the value of the asset.
  • Term sheets will provide broad ("soft") estimates of your loan only, based on your preliminary documentation, and are available in one business day, if you provide us enough information to make a general evaluation of the value of your asset(s). At the minimum, we need evidence of ownership and certification in the form of appraisal or if none is available, willingness to allow your lender to appraise. Photos are encouraged.

Please note that if Criss-Cross Financial has any doubt about the ownership or authenticity of the asset, it reserves the right to reject the application outright.

Ready for a quote?

      • Assemble whatever certification you have to establish ownership of the collateral. U. S. citizens only.
      • Include certification. If there is no certification or appraisal of any kind, please provide an explanation as to how you are estimated the value of the asset.
      • Use the link below to send. For large files, "zip" (compress) the file before attached, or send via email to Intake@DEWCCF.com
      • Include a copy of your driver's license or passport. (If you can include a photo, that is helpful).
      • Use the link below to answer a few questions and attach as many provenance and ownership-proving documents as you can (PDF preferred, .JPG or .PNG formats OK), along with a picture ID. and that's it. We'll deliver an estimated loan amount and estimated rate and funding date with other details, and provide full lender disclosure upon receipt of your no-obligation term sheet signed (two clicks using our digital Verisign/Echosign system). Please note: This program is currently open to U. S. citizens and permanent residents only; we do not accept "beneficial owners", third-party owners, temporary owners acting on behalf of foreign parties, etc. Only actual, true, verified direct individual non-corporate or trust owners of the assets.

If you wish to proceed at that point, we'll take you directly into the licensed lending institution and you'll be funded within 24 hours of your assets arrival for professional appraisal.

LuxLine™ - Short Term. For this program, your rates are higher -- averaging 2-4% of the outstanding balance per month, payable monthly, interest-only if you wish. These are six-month loans, and the principal must be repaid at the end of the six month period. Assets are appraised professionally and vaulted in New York, and your licensed lender will arrange transportation or in some cases may come onsite to inspect/appraise if needed. No credit is required for this program, only documentation proving ownership and certification or other valid documentation of your asset's condition and value. Inquire for details. The key question: What is the verifiable value of the asset(s)?

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purchase order & trade finance

Discounting Letters of Credit

As the seller and exporter, to get paid for an order, you normally must present to your bank the required documents to verify your order has been shipped to the customer. Your bank then forwards the documents to the customer's bank that holds the letter of credit, and when that bank verifies the documents, the money will be transferred to your bank and you are subsequently paid for the goods that you sold. The trigger to start the process to claim a Documentary Letter of Credit (DLC) payment occurs when the export and shipping documents are completed and delivered to you, the seller.

What Does Discounting Letters of Credit Mean

A letter of credit discount occurs when your bank offers to advance you the letter of credit payment before you have completed the steps needed to present the sales and shipping documents. It is called a “discount” because you do not receive the full payment amount. The discount represents the interest or fee that is earned for providing your company with the proceeds of a sale before you have completed the terms of the sales agreement, and you are able to “cash in” the DLC prior to its maturity date.

Criss-Cross Financial Group Assists You to Meet Your Cash Flow Needs

Speed Up Your Cash Flow!  Our letter of credit discounting services can benefit your export business in several ways…After receiving an order from an overseas customer, it can take several months to manufacture the goods and get them onto a ship, at which point you could collect on the letter of credit. With our discounting services, you get most of the money during the production process, which in turn funds your business operation. Another way to use our discounting services involves giving your customer an extended term to pay. For example, you may give the customer 90 days after receipt of the goods, so that company has time to resell your products before the foreign bank must make good on the letter of credit. Criss-Cross Financial Group will assist you in obtaining a discounted advance, so your business does not wait three months to get paid; and one of the best things about our services is that there are not any personal or business credit requirements!  Why wait 30, 60, or 90 days, when you can have funds in your account within 3 business days?  Apply today, and let one of our trade finance specialist show you how Criss-Cross Financial Group can assist you in speeding up your business cash flow, unlocking hidden cash with a strategic approach to trade finance!

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