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NHL Athletes
Contract-Based Financing for NHL Players
Contract-based financing is a specialized type of financing that allows a borrower to secure funds using a contract as the basis for a loan. For NHL players, this is often very beneficial as contract-based financing is not dependent on the borrower having a high personal credit-score, income history, or even collateral such as a house. The amount a NHL player can borrow using an NHL loan is determined by the type of contract, size of the contract, and the number of years remaining on the contract. With an NHL player contract in-place, a player can access a percentage of the remaining guaranteed dollars on their NHL player contract.
What Can a NHL Player Use a Contract Loan for?
NHL contract advances are excellent options for players who need funds for various purposes such as:
What is the Process to Applying for an NHL Contract Loan?
Applying for a NHL Contract Advance is a simple and straightforward process. The first step is to submit a loan request which you can do on our Request Financing page. Once the request has been submitted, potential borrowers will go through the process outlined below:
Pre-Qualification
Upon receiving a loan request, the Sure Sports credit team will review the athlete’s contract and request, to determine eligibility. If an athlete’s contract qualifies him/her for a loan, then terms are provided within 1-2 business days.
Proposed Terms Issued
After accepting the loan terms and submitting a signed term sheet along with a credit and background authorization form, Sure Sports will conduct a credit check on the borrower within 1-2 business days.
Client Signs the Term Sheet
After accepting the loan terms and submitting a signed term sheet along with a credit and background authorization form, Sure Sports will conduct a credit check on the borrower within 1-2 business days.
Application Process
The required documents for loan application will be requested within 1-2 business days after receiving the signed term sheet.
Underwriting
The length of the underwriting process is determined by the complexity of the loan and can be as little as 3-5 business days and up to two weeks in some cases.
Credit Decision
At the conclusion of the underwriting process, your loan will either be approved with final terms, declined, or receive a request for additional information.
Loan Documents Drafted
Once final approval has been provided, loan documents are drafted which may take 1-2 business days.
Closing & Funding
The timeline from receiving a full file to closing/funding ranges from 1 week for private-line loans to 2-4 weeks for bank-line loans.
Contract-Based Financing Repayment Terms for NHL Players
Unlike traditional loan options, contract financing provides NHL players with flexibility when it comes to loan repayment. The repayment of a contract advance will be coterminous with the player’s NHL contract, meaning the amount of time a NHL player has to repay the loan will match the amount of time left of the player’s NHL contract.
Most people are not aware that NHL players only receive their income during the NHL season. While this can certainly present a challenge during the offseason, Sure Sports will always customize a NHL player’s loan repayment schedule so the player is only making payments when they are getting paid, between November – April.
Benefits of Contract-Based Financing With Sure Sports
Most traditional banks are reluctant to provide an unsecured contract-based loan to NHL players, leaving these players with few options but to take out high-interest rate loans from private lending companies or sell a percentage of their future earnings to meet current obligations.
Working with Sure Sports, NHL players have access to the speed and ease of working with private lenders where funds are often available in as little as 48 hours following approval. In addition, thanks to Sure Sports relationships with bank partners across the country, NHL players are also able to qualify for unsecured contract-based loans with traditional banks. This access is unique, and due in part to Sure Sports’ deep understanding of the sports and banking industries, as well as relationships in these industries that span decades. The flexibility to provide both private and bank loans to NHL players truly sets Sure Sports apart from other companies in this space.
When a NHL player is looking for capital, regardless of the use of funds, discretion is extremely important. Confidentiality is at the forefront of every Sure Sports loan request. In addition, NHL Players or their advisors will work exclusively with Sure Sports from the initial request until the loan is paid off. This ensures a seamless experience for NHL players and their advisors throughout the entire process.
What about NHL Free Agents?
Since a contract loan requires a valid contract to lend against, NHL players who are free agents are not eligible for a Contract Loan. However, Sure Sports has a specialty product that can help these players with their financing needs as well. Using the player’s Future Market Value, Sure Sports offers a bridge loan that enables players to bridge their income gap without the requirement of making loan payments.
NHL Player Contract-Based Financing
Case Study
Sure Sports received a request from the business manager of an NHL player looking to secure funds to invest in several off-ice business opportunities.
The timeline was very short as one of the opportunities needed to be funded within 5 business days.
Sure Sports was able to leverage the player’s NHL contract to provide him with a bridge loan to capitalize on the investment opportunities in a short amount of time.
RESULT
Sure Sports provided an unsecured private bridge loan, closing and funding in under 4 days.
After closing on the unsecured private loan in just under 4 days from the initial request, Sure Sports successfully moved the NHL player’s loan into an unsecured contract loan with a banking partner at 6.10% interest rate, with payments spread over the course of his playing contract.
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