Release Equity From Your Publicly Listed Stocks And Shares

What Are Non Recourse Stock Loans And Equity Release From Your Shares

The global marketplace is relatively new at dealing with stock loans and stock-secured financing. For a long time, only clients with a high net worth and large international corporation accounts were able to access equity and stock loans – but not anymore. There are more and more people such as company directors and major company shareholders using stock loans to finance other purchases or even just to free up equity from their current stock holding.

Here at Platinum Global Bridging Finance, we are working to introduce this product to all our clients as a way to democratize these financial solutions. From stock block purchase to a non-recourse insider stock loan, you are sure to find the solutions you need here.

At Platinum Global Bridging Finance, we work closely with insiders through our lending program to provide approved stock loans that an insider can use by freeing up a portion (1%) of the issued and outstanding shares every 90 days. We also specialize in the design of quick-funding securities financing solutions. Our firm will guide you through each and every step along the way, so contact one of our stock loan advisers for more information!

What is a Stock Loan?

Our Insider Stock Loan product will give the borrower liquidity, a hedge against volatile conditions in the market, and access to a simple loan vehicle that is interest only. This transaction is simple yet effective while retaining potential asset appreciation, potential access, or access all the while providing liquidity to the borrower.

Benefits of these stock loans include:

No transfer fees
No application fees
No underwriting fees
Low interest rates starting from 3.5%

Securities-Backed Financing

We understand that each client has their own dreams and goals for their life, and we are dedicated to helping them achieve those. You have worked hard to build your dream for the future, and it is about time that your dream is realized. We will help you work around having to sell your shares while still borrowing against your stock portfolio. We will help you get the lowest rates and the liquidity you need.

What are non-recourse stock loans and how do they work?

A non-recourse stock loan is a type of securities lending loan favored by many investors and possibly the best way for you to raise the funds you need. Providing capital to investors while still letting the investor maintain their assets is one of the main reasons a non-recourse stock loans is used to raise capital in many situations.

Non-recourse stock loans let the borrower pledge collateral, in the form of securities, in return for capital upfront. This way, borrowers can retain the securities that they pledge as collateral instead of selling the securities to raise the needed funds. This is advantageous because you will avoid paying tax burdens that you would incur if you sold the securities outright, also while still accumulating interest on the appreciation of those assets you pledged.

If you are considering a non-recourse stock loan, you should be aware of how they work and some of the additional possible benefits they have.

Benefits When You Are Borrowing Money

One benefit is with a stock-based loan you are limited in the amount of personal collateral that is put at risk. If you default on a non-recourse stock loan, the only thing that is at risk of being seized is the assets you pledged as collateral, in this case, securities. You will never be at risk of losing any other assets if you default because it is a non-recourse loan, this limits the risk to borrowers while still giving them access to much-needed capital.

Another benefit when you are using securities financing with a non-recourse stock loan is you will be capable of borrowing a percentage of the total value of the assets you intend to pledge, every lender has different borrowing and collateral standards that should be considered carefully.

This gives you the ability to borrow more money than you may traditionally be capable of borrowing through other lenders. With a stock-based loan, your eligibility is not affected by your income or even your credit, two things that will affect your borrowing power significantly through a traditional lender.

If you borrow money via a stock-based loan, you never lose ownership of the assets and avoid tax implications of selling the assets. Technically a stock-based loan can result in your profiting from the loan if the borrowed funds are used wisely. If you have something useful for the funds you are borrowing, such as prospective investments, you can possibly return a profit over the expenses of the loan. This would be an example of leveraging your portfolio assets, one of the most important strategies available to investors.

At the end of your loan if you have kept up on payments and maintained your account in good standing you will get the assets back with no additional fees or implications. You can then apply for another loan, which should be easier and a more seamless process for repeat borrowers.

Understanding Non-Recourse Stock Loans

A non-recourse stock loan is a financing option where you use your publicly traded shares as collateral to secure a loan—without the obligation to repay from your personal assets. If the value of your shares declines below a certain point, you can choose to walk away from the loan without further liability. The lender’s only recourse is to retain the pledged shares.

Key Features of Non-Recourse Stock Loans

No Personal Guarantee: You are not personally liable beyond the pledged stock.
Limited Risk: If the stock value falls significantly, you can forfeit the shares without impacting your other assets.
Quick Funding: Loans can be arranged within days, providing fast liquidity for urgent needs.
Privacy: Transactions are confidential and usually not reported to credit agencies.

What Is Equity Release From Your Shares?

Equity release from shares refers to unlocking cash tied up in your investment portfolio without selling the shares outright. Instead of liquidating stocks, you borrow against their value. This strategy is ideal for investors who want liquidity but also want to maintain ownership and potential upside of their investments.

How Does It Work?

You pledge your stock portfolio to a lender.
The lender provides a cash loan based on the current market value of your shares.
You keep your positions and potential future gains while accessing liquidity.

Benefits of Non-Recourse Stock Loans and Equity Release

1. Liquidity Without Selling

Avoid triggering capital gains tax and maintain your market exposure by borrowing against your portfolio instead of selling.

2. Risk Limitation

Because the loan is non-recourse, your liability is capped at the collateral. Your other assets remain protected.

3. Tax Efficiency

No immediate tax event since you are borrowing, not selling.

4. Flexible Use of Funds

Use the loan for real estate purchases, business investments, debt consolidation, or personal financial needs.

5. Competitive Terms

Lower interest rates compared to unsecured loans due to collateralized nature.

Who Can Benefit From These Solutions?

High-Net-Worth Individuals seeking tax-efficient liquidity
Expats managing global investments
Business Owners needing quick capital for expansion
Property Investors funding acquisitions or developments

Risks to Consider

Market Volatility: Falling share prices can affect loan-to-value ratios and may trigger a margin call or collateral liquidation.
LTV Restrictions: Most lenders will provide 50% to 70% of your stock’s current market value.
Share Restrictions: Not all stocks qualify; typically, they must be publicly traded and non-restricted.

How Platinum Global Bridging Finance Can Help

At Platinum Global Bridging Finance, we specialize in arranging non-recourse stock loans and equity release solutions for clients worldwide. Our team ensures confidentiality, fast approvals, and competitive terms so you can access liquidity without disrupting your investment strategy.

Unlock Liquidity Without Selling Your Shares Today

Contact Platinum Global Bridging Finance to learn more about non-recourse stock loans and how you can release equity from your shares securely and efficiently.

About Us

Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Single Stock Loans, Margin Stock Loan, Crypto Finance, Crypto Loans and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.

Other Financing Options We Offer

By platinumadmin on 24 August 2020 / Blog

Tags: stock loan, stock loans

What Are Non Recourse Stock Loans And Equity Release From Your Shares?

Release Equity From Your Publicly Listed Stocks And Shares

What is a Stock Loan?

Securities-Backed Financing

What are non-recourse stock loans and how do they work?

Benefits When You Are Borrowing Money