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 loan 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.

By on August 24, 2020   /   Blog