What are Stock Loans?
Stock loans are loans made to a company or an individual that are secured by shares in publicly traded companies.
As a borrower, in order to complete the transaction, you are required to sign a ‘stock loan agreement’ which essentially states how long the loan lasts for, what the agreed interest rate is, the loan amount, and how many shares are needed to secure the loan.
Stock Loan Solutions is a company that offers stock loans, providing borrowers the funds needed for either business or personal reasons.
Why do Stock Loans Exist?
Similar to traditional loans, companies offer stock loans to collect interest payments from borrowers.
Why would a borrower want to pledge their shares instead of selling them outright to raise capital?
There are many reasons why one would borrow against one’s shares Some of the most common reasons are:
— To be able to access cash quickly in order to pay off debts or expenses
— To start a new business or expand an existing business
— To better manage tax liabilities
As a borrower who owns shares in a publicly traded company, you can benefit from a stock loan. It just depends on your individual situation as to exactly how you will benefit from the loan.
How To Qualify For a Stock Loan
In order to qualify for a loan, you must own non-marginable ATHEX securities. Your shares must also not be bound by any trading restrictions.
We can work with you to determine the best terms for your stock loan.