Optcapital offers Lines of Credit to our clients.  Many of our clients use their Lines to fund case acquisition and cover firm operating expenses.  However, the Lines can be used to fund investments, personal expenses, or other uses.

Lines of credit are underwritten on an individual basis and generally allow our clients to borrow between 50% and 90% of loan collateral.

Interest rates on the Lines of Credit are floating rates, and have historically been between 4% and 6%.

Loans are not tied to your deferred account or deferral programs.  The way that loans are underwritten, structured and documented is critical to the tax treatment.  If loans are not handled properly, it could have a negative impact on the tax treatment of deferred fees.

Optcapital’s loan program is separate from our deferral program.  We work closely with our legal counsel to appropriately structure and document our loans to ensure that they are not tied to our deferral program.

Our loan program carries a “should” level tax opinion, which is the highest level tax opinion the IRS recognizes. Should level tax opinions protect recipients from underpayment tax penalties (for more information on tax opinions, please go here).