AIM Stock Loans – Alternative Investment Market

7. How Fast Will I Be Able To Receive Funds?

We are able to give you an in-principle approval within 24 hours and a confirmed offer within 2 working days.

The assessment process is quick and easy with no documentation required other than the loan amount requested, the number of shares and the ticker name for collateralized stock loans.

For example, if you would like to see if your stock can be used for the pledge, simply let us know

1. Amount of Shares
2. Loan Amount Required
3. Ticker Name

And we will be able to let you know the amount approved within 24 hours, but most likely sooner

8. How Will I Receive The Funds?

Once you have signed our offer letter the following steps take place

1. Offer Letter Signed
2. Custodian Forms and KYC are sent to you to sign and complete
3. Custodian Forms and KYC is completed and returned
4. Within 3- 5 working days a custodian account is opened for you to make the transfer of the securities you wish to pledge
5. Securities are transferred to the custodian and the loan amount is simultaneously transferred via a Delivery –versus-Payment Process (DvP)
6. The loan transaction is now completed and payment is made according to the payment schedule

Benefits of the London Stock Exchange

Companies that are listed on the LSE have access to a wide range of benefits. Some of the services include:

• Media coverage
• Access to research and announcements
• Real-time pricing
• FTSE UK Index Series benchmarking

Companies may join this market in several different ways, including:

• Standard segment
• Premium segment
• High Growth segment
• Specialist Fund segment

About London and the UK

The London Stock Exchange and its submarket, the Alternative Investment Market, are two major players in the London financial markets and across the United Kingdom. The UK is just northwest of mainland Europe and includes England, Scotland, Wales, and Northern Island. The UK is a prominent European country with a busy and successful economy. With London as its capital city, it has a total population of over 66 million people and is a world leader in trade.

London Stock Loans

Stock loans are an essential element for investors participating in the London Stock Exchange and the Alternative Investment Market. This type of lending, also known as securities-based lending, uses shares of publicly traded stock to secure a loan.

In this case, if a borrower takes out a London AIM stock loan, their loan would be secured by shares of stock that trade on the LSE or AIM. Many people prefer to use a securities-based loan because it protects their other personal assets.

Benefits of AIM Stock Loans

Stock loans are also a popular type of lending because of the direct benefits that they offer. This includes:

• No Credit Checks: Unlike most traditional loans, stock loans do not require a credit check for a borrower to qualify. Because you aren’t personally liable for your stock loan, your credit score isn’t affected either if you default on the loan.
• Liquidity: Stock loans are also popular because of the liquidity that they offer. Borrowers don’t need to sell their stocks and incur tax liabilities to access the underlying cash. . Once the borrower closes a stock loan, they can access the funds they need.
• Better Interest Rates: Interest rates are an essential element when it comes to taking out a loan. Compared to other types of lending, stock loans usually have more competitive interest rates.

Getting Started

If you are a current investor who owns shares that trade on the London Stock Exchange or the Alternative Investment Market in the UK and want to apply for a stock loan, let us help you navigate the process.

Our team is well-versed in the current markets. Contact one of our account managers today to discuss your lending needs.

How Can We Help You?

The markets can be confusing and difficult to navigate when you need liquidity. This is where Platinum Global Stock Loans can help. When a traditional bank or lender cannot help you with your securities lending, we are here to get you the funds you need. Our goal is to expand your access to liquidity, whether you are an individual or a business holding London Stock Exchange AIM-listed constituents and requiring funds by lending against AIM-listed stocks. Our solutions are fast and secure, aiding you in your journey to financial diversification. Investing in an alternative investment market stock loan can yield plenty of reward if you only know how to secure one.

What Is the Alternative Investment Market (AIM)?

The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. AIM allows these companies to raise capital by listing on a public exchange with much greater regulatory flexibility compared to the main LSE stock market.

Understanding the Alternative Investment Market (AIM)

AIM opened its doors in 1995 to 10 companies with a combined market capitalization of about £82 million ($116 million). Since then, it has helped more than 3,865 companies to raise over £115 billion ($163 billion) and, according to the LSE, is now home to approximately 850 companies with a combined market cap of £104 billion ($147 billion)

Companies seeking to do an initial public offering (IPO) and list on AIM are usually small companies that have exhausted their access to private capital but are not at the level required to undergo an IPO and list on a large exchange. Although AIM is still referred to as the Alternative Investment Market, or London’s Alternative Investment Market in the financial press, the LSE has made a practice of referring to it by its acronym only.

AIM and the Nomads

The process for a company listing on AIM follows much the same path as a traditional IPO, just with less stringent requirements. There is still a pre-IPO marketing blitz, with historical financial information to stir up interest, and a post-IPO lock up, for example.  One key difference is the role nominee advisors, commonly known as nomads, play in the process. These nomads are seen as the regulatory system for AIM and are tasked with advising the companies pre-IPO and after. One issue that is frequently raised about this relationship is the fact that nomads are responsible for ensuring regulatory compliance, but they also profit in the form of fees from the companies they list and continue to oversee as part of the listing agreement.

AIM’s Reputation as a Less-Regulated Market

AIM is seen as a more speculative investment forum due to its relaxed regulations compared to larger exchanges. The regulation for companies listed on AIM is often referred to as being light-touch regulation, as it is essentially a self-regulated market where nomads are tasked with adhering to the broad guidelines.

There have been cases of nomads failing to do their duties, as it were, and AIM is not a stranger to outright fraud—to be fair, no major exchange is either. As a result, AIM tends to attract sophisticated and institutional investors who have the risk appetite and resources to perform independent due diligence.

AIM has been criticized for being a financial wild west where companies with questionable ethics go for money. This criticism has held up in some cases, particularly with extraction companies operating in impoverished regions of the world. However, AIM has also shown the value of having a gap market where risk-hungry investors can help accelerate cash-starved companies along their growth path, benefiting the company, its investors, and the economy as a whole.

Today AIM is firmly established as one of the world’s leading growth markets with a universe of companies from a wide range of sectors around the world. Companies, intermediaries and investors recognise AIM as the market of choice for smaller, growing companies as it continues to help them raise capital at admission and throughout their time on the market. Since its launch in 1995, more than 3,100 companies have joined AIM, raising over £67 billion to fund their growth. A number of factors have contributed to this success including:

• A balanced approach to regulation facilitates a smooth transition to becoming a public company and allows companies to focus on growing their business once on the market
•  A network of advisers that is experienced in supporting companies from the time they first consider a flotation, through to helping them raise capital to fulfil their growth potential
• An international investor base that has the knowledge and understanding to effectively provide capital to companies as they progress and has confidence in the regulatory environment

Companies that choose to join a public market in London have a choice depending on their size, stage of development and capital raising requirements and should discuss the options available to them with their advisers. The Main Market is for larger more established companies and companies have the further option of two types of listing – a Premium Listing or a Standard Listing. Companies with a Premium Listing are required to meet the UK’s super-equivalent rules which are higher than the EU directive minimum requirements for a Standard Listing, and as a result, benefit from access to a wider range of investors.

International investor base

AIM provides a robust and proven platform for companies seeking to raise growth capital, both through an IPO at the time of admission, and through further fundraisings. The total of £67 billion raised by AIM companies since the market’s launch is evenly split between new capital raised by companies joining the market and further capital raisings by existing AIM listed companies.