If you’re considering the multi-currency loan product, there are some things to know that make risk mitigation very easy to understand.
- It’s VERY important to understand that there is absolutely NO PRE-PAYMENT PENALTY! What does that do for you? It mitigates foreign currency risks through giving you room and options to move around.
- The ultimate risk mitigation strategy is in the name of this loan product itself. The term “multi” means that you have multiple currencies to choose from. This is a major added benefit, because this loan product mitigates its own risk.
- As an example, if you enter into this loan product in Swiss Franc, you have the option each quarterly anniversary date to switch to another currency that makes the most sense. If the Swiss interest rate shoots up to an inflated rate that you’re not comfortable with, then you have the option to do a currency switch to one of your other currency choices that better benefits you.
- Don’t forget, one of your currency options is in fact the USD. Again, this is risk mitigation at its best, as you can always go back to the United States dollar that you know and trust so well.
- KIMAGE has chosen to use four currency choices in our loan calculator and throughout our program information. These are the top currencies that offer the lowest interest rates coupled with the strongest currency rates. In other words, your interest rate is lower and the strength of the US dollar is stronger than all of these currencies. What does this mean? You can pay your loan down quicker!
- If the “multi” aspect of this loan isn’t enough, then you must also understand that this loan product offers a quarterly lock rate. What this means is that each quarter when your anniversary date arrives, there is a lock on the interest rate and it will not change again for that quarter. Although this won’t benefit you if the interest rate drops, it does protect you should it rise. Again, a quarterly lock rate is another way to mitigate risks, and the lender is helping you!
- When it comes to risk mitigation and why this loan is so great, there is yet one more point to make. In addition to all of these key points:
- NO pre-pay penalty
- The ability to currency switch each QTR – Even back to USD!
- A quarterly lock rate on the interest
- The strength of the USD helps you save money!
Do you see why this works?
Total risk mitigation all the way around from front-end to back-end!
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KIMAGE Investments, LLC