Posts Tagged stock loans

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