Option Financing
Option Exercise Loan
How can Collective help me exercise my options?
Option Exercise Loans enable you to easily finance up to of 100% of your exercise price without having to pay interest or stock fee
Fast & Easy
Applying for an Option Exercise Loan takes just minutes and can fund within days.
Interest Free, No Stock Fee1
Option Exercise Loans charge nothing in interest and have no stock fee. As a result, they can cost a fraction of what other lenders charge.
Integrated Process
Option Exercise Loans are seamlessly integrated into your other Collective transactions. Collective orchestrates the option exercise and payments for you.
Talk to a Collective Liquidity representative
Our representative is happy to answer all your questions.
What is an Option Exercise Loan?
Before you can sell or exchange the shares underlying your stock options, you need to exercise your options by paying the exercise price. However, many employees would prefer not to come out of pocket to pay that exercise price. There are lenders who will loan you the exercise price, but they can charge substantial interest rates and take a significant portion of your stock. Now, employees exchanging into the Collective Exchange Fund can finance their options without paying either interest or a stock fee.
- Option Exercise Loans are available only to those exchanging into the Exchange Fund
- Option Exercise loans are seamlessly integrated into your Collective Liquidity transaction process
- Collective manages the payment of your exercise price to your company from the Option Exercise Loan proceeds and the exchange of your shares into the Exchange Fund
Loan Terms
- Loan Amount:Up to lesser of 35% of value of shares or $350,000 (min $5,000)
- Interest rate:0%
- APR (Estimated1):15%
- Stock fee:0%
- Prepayment penalty:None
- Origination fee:2.5% of Loan Amount
- Term:Up to 90 days
- Requirement:Commitment to exchange into the Exchange Fund
- Minimum FICO score:580+
How Option Exercise Loans work
Reduce your risk and gain liquidity easily
Start Your Exchange
Initiate an exchange into the Collective Exchange Fund and an Exchange Loan from our website or by talking to a customer service representative. Indicate you'd like an Option Exercise Loan as part of your transaction.
Example
For example, if you hold stock options on $100,000 worth of shares, you can initiate the exchange of those shares for a $100,000 partnership interest in the Collective Exchange Fund, a diversified portfolio of leading unicorns.
Use an Option Exercise Loan
Complete your Option Exercise Loan and Collective will use the proceeds to pay your exercise price to the company for you and process your exchange.
Example
If in our example, the exercise price on your options totaled $20,000, you would take out a $20,000 Option Exercise Loan and Collective would use the proceeds to pay your exercise price to your company.
Payoff Your Option Exercise Loan
When your exchange is completed and your Exchange Loan funds, we use the proceeds to pay off your Option Exercise Loan.
Example
When your exchange of shares into the fund is completed, your Exchange Loan will typically fund within 3 business days. Collective uses the proceeds to pay off your Option Exercise Loan from the proceeds and wires you the balance.
1Loans subject to credit approval; terms and conditions apply. Minimum loan amount is $5,000; maximum loan amount is $350,000. A 2.5% origination fee applies and is deducted from the loan proceeds. For example: A loan amount of $75,000 with a 2.5% origination fee and a 2 month loan term, will result in an APR of 15% and 1 single payment of $75,000, due on the maturity date of the loan, which can be made directly from an Exchange Loan. Actual loan duration and related APR may vary.