arrow pointing left Back to Use Cases

Securitize a low-volume loan backed by collateral and enable the certificate to be sold to multiple investors.

Advantages

Borrower

  • Various payoff possibilities
  • No withholding tax
  • Feasible for low amounts
  • No dilution for existing shareholders​

Investor

  • Various payoff possibilities
  • Less credit risk (due to pledge on property)
  • No withholding tax
  • Trustee realizes the collateral in a credit event and pays the proceeds to the issuance vehicle

How that works