Benefits of a Non-Recourse Stock Loan from a Private Stock Loan Lender Liquidity is a major reason executives, insiders, and ultra-high net worth individuals consider non-recourse stock loans in meeting their fast cash and liquidity needs. Let’s take a look at some of the other advantages this type of financing offers. 1. Borrower not personally liable for the loan. 2. Privacy and non-disclosure, you may not be required to disclose to others, for privacy many borrowers prefer this feature. 3. Opportunity for a clean balance sheet that leaves room for other refinancing and acquisition opportunities that can make you more attractive to other lenders. 4. You can walk away from the loan, the day after the loan is funded and not be liable for any future interest payments or principal payments with a non-recourse loan. 5. In the case of default, the lender can only seize the collateral pledged for the loan and cannot go after any of your other personal assets. You are safer with a non-recourse loan and have more options and security than a recourse bank loan or a margin loan. 6. You do not have to disclose liability on financials, to partners, or other financial lenders due to the fact that you are not obligated to pay back the loan. This major benefit is why you may want to structure this for privacy, so it does not impact your personal financial statement. 7. Better product than a bank, minimal paperwork and fast closings – Private lenders can move quickly, no red tape and offer a streamlined stock loan process. No need for financials, no credit checks, or business plans written out. 8. Personal credit, tax returns, etc. not required – no tax returns from multiple years like traditional banks require, which is a far more complicated process. 9. You reap 100% of the rewards of
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Non-Recourse Stock Loans There is a crucial distinction between the loans we offer, non-recourse stock loans, and the more commonly issued recourse loans. Both loan types include borrowing money in return for collateral. With recourse loans, however, the lender can come after much more than what you put up as collateral, and failure to repay the loans can result in When you borrow for a personal or business-related purchase, such as a vehicle or a tractor, you typically enter into what’s known as a recourse loan. This means that you are fully responsible to repay that loan by whatever means necessary, including not only repossession of the asset(s) you bought with the loan, but any other assets necessary to repay the full loan amount. If your financial situation suddenly changes, this can leave you in a dire predicament, with years spent digging yourself out of a financial hole. Then there’s the type of loan we offer: non-recourse loans. With security-backed loans, you don’t have to worry about a major change in your financial situation or the value of your pledged securities, because you can walk away from the debt at any time, problem-free. Why our stock loans are the right choice: No credit checks No requirement to repay, no effect on credit if you terminate the loan early Walk away from the loan at any time You never lose ownership of your shares. Keep earning a return while enjoying liquidity. Protect yourself from major capital losses. If the value of your share suddenly falls, simply walk away from the loan. There are several reasons you may decide not to pay your debt, and relinquish the securities you pledged, but the most common reason is that the value of those securities has fallen dramatically. For this reason, a stock loan is
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