Astor Wealth Group sets a precedent in private lending by offering genuine Delivery Versus Payment (DVP) funding for qualifying blue chip stocks. CEO Thomas Mellon criticizes the industry’s deceptive practices, emphasizing transparency, and Astor provides clear funding schedules to maintain trust and clarity with borrowers.
In the evolving landscape of private lending, Astor Wealth Group is taking the lead by becoming the first and only private lender to offer true Delivery Versus Payment (DVP) funding for all qualifying stocks. DVP funding is available for all blue chip stocks—stocks that trade in excess of $5M USD per day, averaged over a 30-day period— with a DVP maximum credit facility of US$200M.
In commercial banking and securities industries, Delivery Versus Payment (DVP) funding is standard; it directly links payout to delivery of securities. Equally standard in the private lending landscape, sadly, is the misuse of DVP as a superficial lure to draw in potential borrowers with false indications of immediate funding. Thomas Mellon, CEO of Astor Wealth Group, states, “An ongoing challenge within private finance sector is dealing with unrealistic funding promises, guarantees and marketing gimmicks offered by new and existing under-capitalised lenders that cause indelible harm to the industry and undermine the trust of new clients.”
He remarks, “Although not unexpected in a competitive landscape, it’s crucial to recognize it for what it is – desperation.”
In the private lending world, these complex bait and switch, protracted funding mechanisms and marketing gimmicks skew the perception and expectations of both seasoned brokers and prospective borrowers. Practical confusion can seep in, sparking uncertainties and misleading views that ought to be addressed comprehensively.
Mellon declares a steadfast commitment to arming his potential clients with the wisdom encapsulated in the ancient phrase, “if something appears too good to be true, it almost certainly is.” He elaborates with a sobering revelation, “Consider a stock trading at $300k USD per day. Suddenly, the prospective borrower holding these shares is inundated with offers from 10 lenders of a US$10-20M loan against these shares with the that the entire credit facility will be fully funded within 3-5 days of the lender receiving collateral. The borrower will be in for a jolt of reality when not even 5-10% of his loan sum is funded within the first 15 days. Any lender willing to fund US$20M against a stock with this liquidity would need to sell collateral for 200 straight business days to claw back their original investment. This obliviously also ignores the punitive downswing in both price and volume of the issuer that would ensue as a consequence of such voracious selling pressure. Such risky propositions would never clear the discerning eye of any Risk Management department. Let this serve as a stark reminder that in the world of finance there is no free lunch, ever.”
Honouring transparency and integrity, Astor Wealth Group provides a comprehensive funding schedule to all borrowers whose securities collateral falls short of the DVP liquidity requirement. Borrowers are armed with a realistic funding timeline so that they can plan accordingly for their needs, or seek alternative financing solutions for more immediate capital demands.
Organization: Astor Wealth Group LTD
Contact Person: Astor Wealth Group
Contact Number: +65 3158 3625
Address: 8 Shenton Way
Address 2: Downtown Core
Release Id: 1809236453