Stock Loan
Whether you need to borrow cash for personal or business purposes, these stock loans can be funded within as little as five business days and are available to insiders, non-affiliates and common shareholders of publicly traded companies on the U.S. exchanges, as well as other major foreign exchanges. Big Board or Large Cap stockholders are usually eligible for high LTV stock loans, while Small to Mid-Cap stockholders can receive respectable LTV's based on exchange, price and liquidity. With all of our stock loans there are no out-of-pocket expenses or up front fees.
How may I use the proceeds? Our clients have used their loan proceeds to obtain real estate and other tangible assets requiring capital up front. Others have financed the purchase of a business or expanded their existing operation. It's your capital, use it..
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Question: What is a stock loan?
Answer: A stock loan is indeed a loan, and not a sale. Share owners concerned about losing equities they'd much rather keep but needing cash now can at last tap their portfolio's value for up to 80% of the effective market price while still participating in some or all of the stock's rise in value over the term of the loan — all without selling their shares. It's a win-win that puts a floor on loss all the while retaining your right to profit from its growth. You are in and out of the market "at the same time".
Simply stated, a stock loan is an innovative loan that takes advantage of the risk reduction possible when a stock is professionally utilized via proprietary collateralization techniques. The administrator of your stock loan carefully utilizes each collateral share to ensure maximum cash for the borrower while cutting lender's risk of loss to a minimum, but most importantly doing so in a manner that aims to protect share price integrity throughout the process. These proprietary methods reduces the lender's risk of loss if the loan is not repaid — and with this reduced risk in place, up to 80% of the portfolio's value becomes immediately available you the shareowner.
Repayment of your Stock Loan is flexible as well. Repayment of your loan is done with interest only quarterly payments. At loan maturity you can either pay off the principal and get your shares back or notify us at least 30 days in advance of maturity that you intend to exercise the non-recourse provision of your loan, forfeit your shares, and walk away with no liability or adverse effect on your credit rating. In addition, you can choose to extend your stock loan for a further period of time..
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