What Is  A Stock Loan?

A Non-Recourse Stock Loan by definition is a structured financing tool that is secured exclusively by the pledge of specific stock(s) which means that there is no additional collateral or personal guarantees required. This type of stock loan or financing product allows a borrower to unlock the cash value of their equity position without selling the shares in the open market or risking the use of recourse loans such as margin loans.

By pledging securities as collateral for a Non-Recourse Stock Loan, a borrower is able to eliminate concerns about debt liability should a default occur due to market volatility or other factors that can cause a stock’s value to fall. The non-recourse aspect allows a borrower to simply walk away from the loan and retain the cash they received at funding, unlike margin loans which are recourse and require the repayment of the loan after the shares are sold.

Lenders for Non-Recourse Stock Loans offer very competitive interest rates and terms that are customized to certain needs a borrower has and is one of the simplest and most effective ways to monetize an equity position based on the quality of the equities or shares provided. Non-Recourse Stock Loans offer interest-only payment structures due on a monthly or quarterly basis until the loan reaches maturity, thus providing a more convenient means of servicing the debt. These loans can be classed as international stock loans as stock loans can be raised on any stock listed on a major worldwide stock exchange that generates sufficient daily volume.

What Are The Benefits of A Stock Loan?

  • Obtain Liquidity Fast
  • Protect yourself from market volatility
  • Simple, fixed stock loan rates from 2.5%
  • Non-recourse loans and margin loans
  • Fast, easy and transparent Process
  • No upfront or hidden fees. Fees deducted from stock loan proceeds
  • No credit checks
  • No Personal Guarantees
  • 100% Privacy Guarantee
  • Flexibility in the use of your money
  • Competitive Loan to Values. From 45% up to 80% LTV
  • Quick closing and Funding within 10 days or less
  • Can loan on recent IPO stock issues no problem
  • Loans are available on Blue Chip Stocks, OTC stocks, Penny Stocks, OTCQX, OTCQB, OTC Bulletin Board OTCBB and OTC Pink Sheet markets. And also on Alternative Investment Market AIM Stocks listed on the London Stock Exchange.

How Long Does It Take To Obtain A Stock Loan?

Our unique position with links to a number of stock loan lenders means we collaborate with owners of publicly traded stock on the terms of each and every stock loan financing transaction. Our process is quick, transparent and completely confidential. Stock Loan financing proceeds can be used for personal or business purposes, or to diversify or hedge current stock positions. Funding is quick with a transaction closing in as little as 10 days provided the client has the correct documents at hand. Stock loan funding is available in certain instances in less than 5 days given that the correct financial circumstances are in order.

Stock Loan Funding Process

  • Stock loan client submits an inquiry for funding by providing a stock symbol, stock name or stock code and the number of shares they hold.
  • We determine the viability of the transaction, and calculate a maximum transaction amount, relative to the value of the stock and the current daily traded volume of the stock.
  • We issue a stock loan term sheet to the client to review.
  • Terms are negotiated and finalized and the term sheet is signed and returned to us by the client.
  • We send a KYC stock loan application form to the client for completion.
  • The KYC stock loan application is returned with supporting client documents and a stock custodian statement.
  • The master loan agreement is then issued to the client for signing.
  • The final master loan agreement contract is negotiated and signed.
  • Both parties coordinate a delivery date with their respective brokerage for the shares.
  • The transaction is funded normally within 10 days.
  • The stock transaction can be funded within 7 days in extreme situations.

Re-Cap of Benefits Of A Stock Loan

There are a number of key advantages to using funding for an equities-related transaction from our stock lenders.

  • Fast transaction & funding
  • Non-recourse, Repo and margin loan options are available
  • No personal or Corporate guarantee.
  • Fast and easy stock loans.
  • No credit reporting in the event of a default
  • Private & confidential
  • Quick closing offering the ideal stock loan solution
  • Reduce the need and time required for traditional bank recourse financing
  • No out-of-pocket expenses or upfront fees
  • Low-interest rates and maintenance fees
  • Fair share pricing using monthly volume average
  • Flexible stock loan terms
  • Large transaction amounts are accepted no problem
  • Minimum lending USD50,000 to USD500m and more
  • No maximum lending ceiling

Stock Loan Advantages

  • Gain access to money & liquidity fast, privately, easily and cheaply using your publicly traded stock/securities.
  • Fulfil your short-term financial goals without selling your stock.
  • Get liquidity for any purpose using your securities, reduce concentrated risk exposure and solve complex financial goals needing instant liquidity.
  • Major worldwide stock exchanges are accepted as well as borrowers from around the globe.
  • Protect your stock portfolio and access cash with our non-recourse stock loan program.
  • Lend against free trading stocks on most foreign exchanges.
  • Use your stock loan to invest in your business, buy real estate, buy luxury items such as boats, cars, or rare art or even to just to have cash on hand or buy more stock in your company or another listed company.
By on November 10, 2021   /   Blog  
Tags: ,