A stock secured loan is a loan where a stock or bond works as the guarantee for the loan. The loan is an interest-only loan with quarterly interest payments and has a life that ranges from 3 to 10 years. 

Because the amount and quality of the security is the only factor on whether a business qualifies for the stock loan, the application process is very quick. Also, because it is a non-purpose loan, the firm doesn't hold any "personal' responsibility.  

With a stock loan, your business may enjoy the following benefits:   

 Quick approval – The stock loan can be approved within 24 hours 

 Fast money transfer – Your business may have the money within 5 to 7 days (If there is an urgent matter, we may be able to speed up the process) 

 Below market rates – Rates vary from 3% to 5% 

 High loan value – Depending on the quality of the pledged security, your company can get up to 80% loan-to-value ratio 

 Business retains market appreciation – Business also maintains the benefit of any dividends or interests produced by the securities during the life of the stock secured loan 

 Different Types of securities allowed – stocks, bonds, mutual funds 

 Non-purpose loan – The proceeds from the loan can be used for any reason (except to purchase or carry marginable securities) 

 Several options at maturity – The borrower may renew the loan, refinance it or pay off the loan 

If you would like to know more information about how a stock loan works, please let us know. We are here to help you along the way in everyway we can.