Our joint venture with Kinetic Strategic Group', and their back-office relationship with both Goldman Sachs and Merrill Lynch allow the firm to provide unique equity credit facilities with a host of advantages from favorable rates, tax advantages, and customized payment structure for each individual or entity.

Lending Environment

Refinancing in today's market is becoming more and more difficult. Credit availability has dried up, rates are too high, terms unfavorable, or the equity devalued so low that refinancing is not an option.

With interest rates at all time lows and government aid to financial institutions one would speculate that credit would be widely available. However, this is not the case. Financial institutions are either shoring up their own toxic assets and devalued equity holdings or leveraging the "cheap" capital into new investments. Very little is being made available to the community, whether individual or business.

Kinetic Strategic Group's unique position and partner of a joint back office relationship creates an opportunity to refinance existing loans or create new loans with a client's own equity holding and with possibility of self-financing the debt.

In today's economic climate this is an opportunity to refinance existing debt, commercial paper, or other debt holdings in the most favorable condition and without the traditional loan risk provisions that have created many problems in the first place.

This is, in the most simplest of terms, a self-financing equity credit line. You are loaning money to yourself at a favorable rate, with the added ability for the account to self-finance the debt. No bank is going to offer that opportunity.

Traditional equity loans require the client to post an equity position as collateral for a loan. However there are several problems with these types of equity based loans, from margin call risk to having to make minimum payments to avoid liquidation of the equity position. The Equity Credit Line is not a loan, but rather a line of credit that a client is able to borrow and repay any time without concern of either liquidation or traditional margin calls.

The Equity Credit Line allows a client to use to the insured capital of their equity position without creating a traditional loan structure that is subject to penalties and liquidation.