Collar Advance

Borrow against your concentrated stocks. No margin calls.

Keep your shares. Access liquidity.

Access up to 90% of your stock’s value to buy a home or fund investments. Lock in a lower fixed rate, defer your taxes, and eliminate liquidation risk.

Rates as low as 3.7% annually

Why investors, advisors, and executives turn to Cache to diversify

Client

Michael Spector
CEO, Adero Partners
"Cache enables investors like our clients to eliminate single stock risk without paying a hefty diversification tax."

Client

Kintan Brahmbhatt
CEO and Co-Founder, Olto.com
"The transparency in pricing and simplicity in design makes sophisticated investing straightforward and user-friendly."

Client

Anonymous
Ex-Portfolio Manager, BlackRock
"Cache made the entire investment process incredibly simple and straightforward. Not only is their product truly amazing, but the exceptional customer service makes them the absolute best in the industry. Their innovative approach sets them far ahead of competitors."

Client

JC Puente
Director at Microsoft
"I tried to do an exchange fund before Cache, and it was like trying to join a cult. Little info, little transparency, and little confidence with cost and charges. Cache changed all that!"

Client

R Singh
Ex-Google
"Cache has put together an experienced, professional team that brings the tax efficient strategies of the ultra-wealthy to the masses."

Client

Peter
Chief Product Officer
"Cache provides a great service that just works. Their low-friction delivery of complex financial products made becoming a client an obvious choice."

Client Case Study

How a $4M position turns into $3.2M in cash.

The scenario: Your wealth is tied up in a $4M stock position. You want to bridge to a new opportunity today. A Collar Advance turns that position into liquidity without a huge tax bill.

Unlock up to 90% cash. You receive $3.2M in liquidity today.

How? We place a synthetic "collar" on your stock (a floor and a cap), ensuring the value never falls below the floor. This defined risk profile allows the bank to lend a higher amount against your asset safely.

Smart financing

Lock in a fixed rate as low as 3.7% annually. Because the bank’s risk is contained, you can lock in a fixed rate for the term. The rates can be as low as 3.7%, which is significantly lower than traditional margin loans, and comes without the risk of margin calls.

Tax-smart borrowing

Defer taxes for 2–5 years. Instead of paying taxes today, you defer them until the contract matures. At the end of the term, you can settle the advance using your stock or cash, effectively bridging you to a future liquidity event.

Borrow at rates lower than the alternatives

How Collar Advance works

Collar Advance is a way to get upfront cash in exchange for a contract to sell your stock at a later date. The contract can be structured for 2–5 years, and you may be able to roll it forward until you’re ready to sell.

Define your protection

You select a downside "floor" to define how much protection you want. Based on market conditions, a corresponding upside "cap" is set. This creates a safe range for your stock value. Because the floor protects the collateral, you will never face a margin call, even if the stock crashes.

Example of a 2-year collar with 80% floor and 160% cap

COLLAR DETAILS

• CAP: 160%
• FLOOR: 80%
• Today – 2 YEARS FROM TODAY

Unlock maximum liquidity

Because your position is protected, we can advance significantly more cash than a standard bank loan. In this case, up to 80% of the stock value, minus interest fees and expenses.

Settle on your terms. At the end of the term (typically 2–5 years), the contract settles. You can repay the advance in cash (keeping your shares) or deliver shares to satisfy the loan.

Common questions

• What is a Collar Advance and how does it work?
  A Collar Advance is a way to borrow against your stock for those with a long term time horizon, while keeping some of the economic exposure to it—without the risk of margin calls.

• Who is this for, and what are the minimums?
  Collar Advance is designed for people who hold at least $2M+ in a single stock.

• How much can I borrow?
  Typical advance rates range from 70% to 90% of the current stock value, minus the interest and transaction expenses.

• How safe is it? Do I face margin calls?
  A Collar Advance is designed so margin calls cannot occur.

• What does it cost, and how does it compare to margin or a mortgage?
  Margin loans often have higher floating rates; however, the Collar Advance often has a fixed, predictable, and often lower rate.

• How long does a Collar Advance last, and what happens at the end?
  Most Collar Advances run for approximately 2-5 years.

• What can I use the money for?
  Proceeds can be used for virtually any purpose, including creating a diversified investment portfolio, financing a down payment, or paying taxes.

Conclusion

Cache offers tailored financial solutions designed for clients with concentrated stock positions, ensuring access to liquidity while maintaining investment integrity.