Loan/LOC against ESOP?
Does anyone know of any lenders that will provide a LOC/loan using my ESOP as collateral?
I know the general answer is no-but I’m wondering if there’s somewhere out there that will with a higher interest rate than is usual perhaps.
My situation is that I can only cash out my esop once I leave this company-but I don’t want to leave .
Approx 400k in esop, year over year is fantastic-25% last year, over 15% consistently.
No company contributions-all me.
Not publicly traded.
I need 40k like yesterday, and I am literally having to consider leaving my position to access these funds if I can’t come up with something else.
Banks won’t touch me because the only banking history I have is a couple small credit cards.
Never had a mortgage, never had any big loans (a couple around 3-5k in past)
No collections or negatives.
All payment histories on time.
My only investments or anything like that is this esop.
No rrsp.
Income 85000/year.
Low credit score due to no credit history as opposed to bad credit history
Credit score 675
40yo
I would like to find somewhere to borrow 40k, and pay back 50k in a year.
This would be ideal for me as if I stay until next years price-I would expect I will make another 100k in esop-therefore even though paying 10k on 40k is 25%-it is more than made up for with the esop i would be able to leave in.
If you have any suggestions I really appreciate it.
I’m quite stuck.