1. Borrow submits inquiry for loan by providing a stock symbol and target loan amount.
2. Lender determines the viability of the loan, and calculates a loan-to-value ratio (LTV) and the interest rate, based on an assessment of both short and long term risks. Lender issues a term sheet to borrower.
3. Terms are negotiated & finalized.
4. Lender sends contract to borrow for review.
5. Final contract is negotiated & signed.
6. Both parties coordinate a delivery date with their respective brokerage firms to fund the loan.
7. Loan is funded through a DVP non-print mechanism, which varies from market to market. The stock is transferred to the Lender simultaneously to the loan funds being transferred to the borrowers brokerage account.