What are the advantages of a Canadian Stock Loan?
If you are interested in extracting the value from your shares in a Canadian listed company, you don’t need to sell your shares to tap into their value. You can use your loan proceeds to generate immediate cash flow without sacrificing your ownership in your existing shares. If you have a well-thought-out plan, it’s a smart way to access your capital for both the short term and the long term.
With this kind of loan, you still get to keep all of your shares. You’ll simply be responsible for a quarterly interest payment until the maturity date of your note. Typically, your repayment schedule will occur over a three to five year period.
Once the loan term has expired and you have paid all of the money back, we will transfer ownership of your stocks back to you.
If you ever decide to back out of your loan at any point, you can do so with no damage to your credit. Because of this feature, stock loans are often more forgiving to the borrower than traditional margin loans.
How Do Stock Loans Work?
Also known as securities lending, these loans are available to help investors keep the stock they own while still having access to the cash they need in order to make other investments. Our borrowers gain the opportunity to dip into the value of their non-marginable stock quickly and easily without having to wait a long time for the money.
Our loan amounts are dependent on characteristics of the collateralized security, including the number of shares, price, volatility, and additional criteria. By transferring your stock to us, you can be assured of receiving a loan against its value. All you have to do is make quarterly interest payments during the life of the loan. We keep the process simple: once you fully repay the borrowed amount, your stock will be transferred back to you.