Lending Solutions

The most important word in the world of money is cash flow. The second most important word is leverage. Cover up to 75% of insurance premiums on a motor vehicle or property with our Financing Solution.

Margin Loans

Let VM Wealth finance your investment purchases today. A margin loan gives you the power to increase your securities portfolio and enhance your returns with minimal cash, leveraging the combined value of your intended purchase and existing securities as collateral while leaving your investment untouched. Similar to a home or car loan, a margin loan is secured by the asset being purchased.

All listed blue chip companies, high grade corporate bonds and treasury securities have an associated lending ratio which can range anywhere from 0% to 80%, as defined by VM Wealth. It is the lending ratio that determines the proportion that we will contribute to the total cost of your purchase.

Example: J$1M Bond Purchase

Value of Holding Lending Ratio VM Wealth Loan Equity from Client Bond Rises to Profit Return to Client
$1 million 80% $800,000 $200,000 $1.1M $100,000 50%

Lending ratios are reviewed from time to time, and may change without notice, or may be adjusted based on individual information.

What do I do with my returns?

The returns can be used for any purpose including acquiring additional shares, withdrawn as cash, or paying down your interest.

What are the Benefits?

  • You can choose the level of exposure/leverage
  • If you have chosen wisely, it is an excellent way to accelerate your wealth, while leaving your investments untouched
  • Your shares/securities still belong to you despite being held as collateral
  • Flexibility to draw down money, purchase more securities or reduce your loan as long as you do not exceed your maximum lending value

Understanding the Risks

Margin loans involve specialized risks, as the value of your shares will change regularly, so too will your lending value. As a result we recommend that you speak to your VM Wealth Advisor about your asset allocation strategy before taking out a margin loan.

To learn more about how a VM Wealth margin loan can complement your overall investment strategy and enhance your returns, contact a VM Wealth Advisor; click here to complete a Contact form.

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