There are many advantages associated with obtaining stock loans:   

 Fast transaction – Once the application is completed, you could have your funds within days. If you have an urgent situation that needs of very quick financing, we can also be able to help. 

 Below Market Interest Rates – Rates vary from 2 1/2% to 4 1/2%. Current’s market prime rate is about 6% and commercial paper may be as high as 8%. This means you could save a lot of money on interest costs. 

 High Loan to Value Rates – The Loan to value rate varies from 35% to 80%. The final value depends on the number and quality of the securities provided. 

 Unlimited Upside potential - The borrower keeps all the security’s market appreciation and obtains the benefit of any dividends or interest rates produced by the stock or bond. At the end of the life of the loan, the borrower gets back the same number of provided collateral, regardless of value appreciation over the term of the loan. 

 Recourse Loan – The borrower doesn’t hold any kind of personal responsibility. The stock loan is only secured by the stock. If there is a default on the loan, the borrower keeps the loan funds and the lender may only keep the collateral provided. The lender has no right to sue the borrower for any money owed. 

 Wide Range of Securities permitted – Borrower may use publicly traded stocks, bonds, and mutual funds. 

 Use Funds for Any Purpose – Borrower may use the proceeds from the stock secured loans for any purpose EXCEPT to purchase or carry marginable securities. 

 

 Quick Approval – The borrower will normally obtain a loan term sheet within 24 hours from the lender receiving the stocks information. 

 

 Fair Pricing – Lender uses a three-day average pricing model for each stock loan. 

 

 Flexible terms – Loan terms may range from three to ten years. When the loan is done, the borrower might refinance the stock loan, or pay off the stock loan entirely.