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Global

Pre-IPO Loan

Securities Finance

Product Details

  • Loan Size: $5,000,000
  • LTV: 30%
  • Interest Rate:7%

Pre-IPO loans are a highly specialised product in the securities-based lending industry, with just a few brokers and lenders operating in the field. However, as more startups and organisations provide stock to employees before going public, this sort of financing is becoming more popular. Liquidity might be difficult if a considerable amount of your net worth is invested in pre-IPO loans. Enness has access to all lenders who provide credit against pre-IPO shares and will negotiate favourable financing terms for you.

Lenders will normally consider granting you a pre-IPO loan if you own shares in a very valuable, expanding firm that plans to list in the near future. While shares in such firms might become extremely valuable after the IPO, future liquidity and rising values are useless if you need financing before the company goes public. Pre-IPO loans are becoming more widespread as a result of this.