A Securities-Backed Loan (SBL) allows you to borrow against the market value of eligible publicly-traded assets that your already own, without having to liquidate those assets. In short, you transfer (temporary) custody of your collateralized assets then receive the loan proceeds in cash, transferred directly into your account. When you repay the loan, your assets are returned to you.

Red Viking loans are primarily installment loans, but we will consider Securities-Backed Lines of Credit (SBLOC). The former is a closed-end loan with a fixed up-front loan amount, pre-defined maturity date, fixed interest rates, and regular principal and interest payments. The latter is an open-end revolving credit line, with no set maturity date, variable interest rates, and interest-only payments.

Liquidity, without liquidating... that's the overarching benefit. Fast funding, to fund anything (no restrictions on use of proceeds), without adverse consequences of liquidating (e.g., capital gains taxes). When you repay the loan, assets are returned at current market value, so capital appreciation accrues to you, and you retain substantial beneficial ownership (e.g., dividends, interest payments).

Direct risks are limited, since non-recourse loans are secured by your pledged assets only. You are never liable for the full loan amount; if you default, you surrender your collateral, that's it. At any time, you may even choose to stop making payments, surrendering pledged assets only. That said, always consider potential indirect risks (e.g., inability to sell pledged assets upon some adverse event).

We accept a wide variety of publicly-traded assets as loan collateral, including: 1) stocks, ADRs/GDRs, and preferred stock; 2) mutual funds, ETFs, and REITs; 2) corporate and government bonds; and 4) "blue-chip" cryptocurrencies and stablecoins. Note that you must have full ownership of your assets, and that assets in certain kinds of retirement accounts may have special restrictions.

Red Viking may, on a case-by-case basis and barring prohibitive regulations, consider other less liquid and/or less conventional assets as loan collateral. For example, restricted stock (e.g., held by executives, directors, and early investors) subject to holdings periods such as initial public offering lock-up shares or fully-vested Restricted Stock Units (RSUs). Contact us to discuss further.

The amount you can borrow is largely determined by the market value and risk profile of your assets, which affects the Loan-to-Value (LTV) ratio of your loan. The higher the LTV, the more you can borrow. LTVs vary by asset class, issuer or guarantor behind your assets; liquidity (e.g., daily trading volume and value); sector and industry; geopolitical risk and currency risk; and other factors.

There is never an up-front consultation fee, and usually no setup fees or ongoing maintenance expenses (rare exceptions are complex loan structures, and even then, costs are negligible). You'll be made aware of all fees/costs in a non-binding Terms Sheet before signing a final Loan Agreement. Note that you may choose to incur related expenses, such as personal legal or accounting advice.

Very flexible, and very competitive. We understand that your situation is unique, so we let you decide (within basic bounds) how much time you need to repay your loan (typically 2-10 years), and how and when you want to make payments (we can customize payment schedules). We also understand that your situation can change, so loan terms can be re-negotiated at any time.

Because Red Viking loans are backed by liquid collateral, we can offer low fixed interest rates (typically 3-9%), especially compared to traditional bank loans. Similarly, Red Viking offers highly-competitive Loan-to-Value (LTV) ratios, which ultimately define how much you can borrow. LTV ratios vary depending on a number of factors (see the previous question for more information).

Very private, especially compared to bank loans. Again, loans are non-recourse, and therein lies the foundation of their relative privacy. The collateral is what matters (almost exclusively) to a lender... not the borrower. In turn, background checks, credit checks, and various other personally-invasive application procedures and disclosures associated with traditional loans are not required.

The few required disclosures pertain to your assets, mainly an identifier (e.g., ticker, CUSIP) and amount (e.g., number of shares). Initially, we won't need any personal information. Eventually, we'll need a few more data points (e.g., identification, proof of ownership). We never report to credit agencies (even if you default), and Red Viking will never sell or share your information to third parties.

Red Viking International Inc. is the parent company of various affiliated entities around the world (collectively "Red Viking). Red Viking is not itself a chartered bank (nor does it plan to be) but instead works with major banks and financial institutions on all transactions. This allows us to be highly flexible, originate loans faster, and accommodate situations that traditional banks cannot.

Founded in 2007 as a Limited Liability Company (Red Viking Global, LLC), we restructured as a C-Corporation (Red Viking International Inc.) to better suit our current size and future growth, particularly vis-à-vis corporate governance and human resources (attracting top-tier talent with equity incentives). Red Viking International Inc. is a Delaware corporation based in New York.