3 Key Advantages of Choosing a Stock Loan
On more than once occasion, you’ve probably heard in the news about how certain stocks did that day. Choosing the right company is one of the most important decisions when investing in stocks. The last thing you need is to see it plummet and all the money you invested gone.
For those who need cash, or want to tap into the value of their portfolios without selling their investments, consider applying for a stock loan. Here’s five key advantages why you should!
The Money Can Grow over Time
Investment pros are all about the cheap stocks. What that means is, investors are paying a low price for each dollar that the company earns. So you need to do research.
A company that’s going to grow faster will be more expensive than an established company that’s growing a bit more slower. The key is to buy stocks that will be worth more later on. Look at the value of the stock loan and expectations for future earnings. Will you have some extra retirement money down the road?
No Negative Consequences
Not sure if you’ll get approved because of your credit? By using a direct lender, no credit check is required. Some companies write their loan packages in house so you’re dealing directly with the lender. It’s important to have a good, reputable company helping you out just in case this is your first time.
Do note that the loan will have additional fees for tax purposes. It’s important to know the difference in investment interest expenses and regular investment expenses.
Improve Your Credit
Now that the stock loan is approved, you can actually start working on getting a better credit score. Didn’t think that was possible? Of course it is.
This type of loan is safer than an unsecured one because the lender has something of value that it can use. Secured loans are much easier to obtain and charge less interest. If you have poor credit history, the stock may be the only way to get the loan.
It’s a win-win.
Selling the Stock Loan
Did you know that the value of securities on loans rose to $2.3 trillion as of October 2017? This mean that you should already have a plan on how to sell your stocks. Values are rising so have an idea of when it is time to sell – watch the market. Talk to the lender or better yet, a financial planner.
Did a price rise or fall at a certain point? Did an analyst downgrade the stock? Having a plan to sell your stocks will avoid future panic. Plus, selling can also help your gains and who wouldn’t want that?
How We Can Help
Investing in a stock loan isn’t for everyone, which is why our experts want to help in every way they can. Want to maximize your stocks as much as possible?
Our management team has over 58 years experience, so contact us today so we can get you money quick and easy!