Collar Advances typically have terms of 1-5 years, with 2-3 year terms being most common. The process from application to funding usually takes 3-4 weeks.
At maturity, your outcome depends on where your stock price ends up relative to the floor and cap:
Stock price between floor and cap: This is the most flexible scenario. You can either settle in cash to get all your shares back, or deliver enough shares to cover your loan amount.
Stock price above the cap: You would deliver shares valued at the cap price, or settle in cash plus pay the difference between the cap and current price.
Stock price below the floor: You can deliver all pledged shares with no additional obligation, or pay back the loan in cash. The floor protects you from losses beyond this point.
If market conditions permit and your contract is structured appropriately, you may also be able to roll the advance forward to continue deferring taxes.