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
Applying for an Options Exercise Loan takes just minutes and can fund within days.
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.
Options Exercise Loans are seamlessly integrated into your other Collective transactions. Collective orchestrates the options exercise and payments for you.
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.
Reduce your risk and gain liquidity easily and without ever coming out of pocket
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.
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.
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.
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.
When your exchange is completed and your Exchange Loan funds, we use the proceeds to pay off your Options Exercise Loan.
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.