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Stock Loans Options to Consider

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Among the numerous alternatives to secure funds for their home, business and other assets which require financial assistance is a stock loan. Unlike any different asset-collateral linked based kinds of loans, this kind of investment needs any free-trading securities as collateral. 80% of the current stock value may be loaned at a fixed rate payable from three to seven years. Check out StockLoan Solutions at this link to get started.

Credit record, employment or revenue statements aren't needed for the approval. Just complete all required paperwork and wait for 5-7 days to process the loan. Jobless and self-employed persons may as well acquire the loan.

Eligible collateral for a stock loan are securities lie penny stocks, bonds mutual funds, different sticks MTNs, US Treasuries, corporate bonds and ETFs. Other chosen from various states are as well permitted which means that non-US citizens may as well acquire the loan. In case the value of the collateral stock fall under the 80 percent needed amount, he borrows an alternative to make up with cash or another stock or security to make the loan valid again. Walking away from the loan is yet another alternative. The lender keeps the collateral. Since a stick loan is a non-recourse loan, the borrower isn't personally responsible, and the borrower's credit ranking will never be affected.

Stock appreciations, dividends, the risk of losing an asset incurred during the term belong to the borrower. The title of the stock ownership changes the moment the borrowers decide to forfeit the collateral. The lender, on the other hand, may benefit from the dividends the moment the borrower fails to meet payment due date.

The same case to any other kind of loans, the risk of losing an asset is the downside in getting a stock loan, especially if the value of the stocks is continually changing. You may walk away in case there is a significant amount of collateral stock, therefore reducing your loss.

A stock loan has a minimal risk since the value of securities changes from time to time. It as well offers the borrowers some benefit, since the interest is paid on a quarterly basis. The alternatives are to walk away to minimize loss or pay the remaining loan cost in case the stock value is higher.

Another benefit of the stock loan is that you can keep your portfolio same. You may have been thinking of liquidating part of all of your portfolio to purchase a piece of real, estate. In case you apply for a stock loan, you are in a position to continue to participate in the gains and losses, and need not incur any capital gains tax which you may need to pay in case you liquidate your stocks.

To read more about this, check out http://en.wikipedia.org/wiki/Loan.

 

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