Options Exercise Loan

Option Financing

How do I exercise my options without coming out of pocket?

Options Exercise Loans enable you to easily finance up to of 100% of your exercise price without having to pay any interest and without having to pay a stock fee

Fast & Easy

Applying for an Options Exercise Loan takes just minutes and can fund within days.

Interest Free, No Stock Fee

Options 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

Options Exercise Loans are seamlessly integrated into your other Collective transactions. Collective orchestrates the options exercise and payments for you.

What is an Options 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.

Options Exercise Loans are available only to those exchanging into the Exchange Fund
Options Exercise loans are seamlessly integrated into your Collective Liquidity transaction process
Collective manages the payment of your exercise price to your company from the Options Exercise Loan proceeds and the exchange of your shares into the Exchange Fund

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Loan Terms

Loan Amount:
Up to lesser of 35% of value of shares or $300,000
Interest rate:
0%
Stock fee:
0%
Prepayment penalty:
None
Origination fee:
2% of Loan Amount
Term:
Up to 120 days
Requirement:
Commitment to exchange into the Exchange Fund

How Options Exercise Loans work

Reduce your risk and gain liquidity easily and without ever coming out of pocket

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 Options 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 Options Exercise Loan

Complete your Options 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 Options Exercise Loan and Collective would use the proceeds to pay your exercise price to your company.

Payoff Your Options Exercise Loan

When your exchange is completed and your Exchange Loan funds, we use the proceeds to pay off your Options 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 Options Exercise Loan from the proceeds and wires you the balance.

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