Securities Backed Loans

Prepared by: Aaron K. Gilbert, PresidentOptimum Funding Group, LLC10940 S. Parker Road, #772Parker CO 80134

Securities Backed Lending

• Investors can utilize their securities portfolios of Stocks, Bonds, Options, Mutual Funds and/or U.S. Treasuries to secure quick access to funds at great low interest rates.

Loan Purposes

Any personal or business purpose is acceptable

• Payoff personal or business debts

• Payoff tax liens• Take advantage of business

opportunities• Buy or refinance Real Estate• Take a long vacation trip

around the World…

Benefits• Fixed interest rates between 2.5% and 4.5%• Interest Only quarterly loan payments• Loan terms of 3, 5, 7, or 10 years• No credit or income verification• Funds may be used for any purpose including personal or business

use• Non-recourse loan. The only collateral are the pledged securities -

not real estate or other personal property.• Loans available for up to 80% of the securities value• The borrower keeps all dividends and upside market appreciation

on the securities• Domestic or International securities accepted

How It Works• Loan-to-value ratio and the interest rate are driven by what securities are

pledged. The more liquid and actively traded securities the higher the loan-to-value ratio and lower the interest rate

• No principal amortization or loan prepayment• At the end of the loan term the loan may be renewed, refinanced, or paid off• At pay off, the exact number of shares initially pledged is returned to the

borrower• Default trigger set at 80% of the loan amount not 80% of the securities value

like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger at $640k (80% of the loan amount). If the securities value fell below $640k the borrower could walk away from the obligation of repayment of the loan and securities and keep the original loan proceeds ($800k) or contribute cash or securities to bring value back to $640k.

Documentation Required

• OFG Loan Application and Fee Agreement– Obtain at:

www.securitiesbackedloans.com

• Copy of most recent Brokerage Account Statement showing securities that are eligible for financing.

Fees Collected

• Processing Fee: $300.00• Origination Fee: Between 2% and 5%

depending upon the size of the loan funded. LOAN AMOUNT FEE

$50,000 - $99,999 5%

$100,000 - $499,999 4%

$500,000 - $999,999 3%

$1,000,000 + 2%

Criteria

• The stock must be free-trading without any restrictions.

• Minimum Loan Amount: $50,000

• No Maximum Loan Amount• Retirement funds (401k's,

pensions, etc), CD's, do not qualify for this program.

Time FramesHere is the time-line and a quick overview of the steps for the completion of the transaction.• Submit a Request for Quote. Once we receive your request a Term Sheet is issued. Usually within

24 hours.• The borrower will be asked to complete a simple 2 page application form. Neither income or

credit is not asked. It is simply who you are and where do you want the funds wired to.• A conference called is placed between the borrower and the Funder to answer any questions.• Loan Agreement is sent to the borrower to sign and they then transfer the securities to the

Funder.• Funder tracks the closing price of the shares for 3 days to obtain an average price.• The loan is disbursed based upon the loan-to-value previously agreed upon.• Borrower makes Interest Only payments quarterly.• Any dividends from the securities is credited to the loan payment and any excess is returned to

the borrower in the form of a check.• Note: Dividend payments made on behalf of the borrower towards the loan are not taxable.• At the end of the loan term the loan is paid off and the same amount of shares are returned to

the borrower.• The time frame from start to finish may be as little as 7-10 days.

Margin Accounts vs. Securities Backed Loans

"What is the difference between Margin Loans and Securities Backed Lending?"Here are a few of the differences:• Margin loans can only go up to 50% of the value of the stocks - we are able

to go to 80%.• Margin loans are not allowed to lend on stocks valued at less than $10.00

per share - we offer the loan on any price share.• Margin loans rates are typically 5-8% ARM's - We are between 2.5 - 4.5%

fixed rate.• Margin loans are FULL-recourse - ours are NON-recourse with no personal

liability. The "call" on margin loans is set at 80% of the stock value and they have one day to cure – our "call" is set at 80% of the loan (approximately 60% of the stock value) and we offer 5 days to cure and since ours are non-recourse if the borrower cannot cure the loan default they can simply walk away.

Simple Steps

• Complete a Loan Quote Request Form listing the number and name of securities and symbol or send us a copy of your most recent brokerage account statement. We will quickly determine the amount of the loan and the interest rate available and prepare a loan proposal for you.

• If you agree to the terms the next step will be for you to provide proof of ownership of the securities. We will then verify the values and within a few days the loan proceeds are transferred into your bank account.

• Upon repayment of the loan at the agreed upon terms the same amount of securities will be returned to you. It's that simple!

Where to Next?

• If you have any further questions or if you wish to obtain a loan quote on your securities, then please go to: www.securitiesbackedloans.com

• Within approx. 24 hours of submitting a Loan Request Form, you will receive a proposal of the terms and conditions we are able to offer you.