About Stock Loans
Stock loans, also known as “securities-based loans”, are loans provided by banks or lending firms. They are secured or backed by shares of stock trading on any global stock exchange.
For example, if you currently own $1M of stock in a company, your lender could lend you a certain percentage of the value of the shares. Once the loan is repaid, control of the shares is returned to the borrower.
Securities-based lending is very popular because it allows you access to money without you needing to give up ownership of your shares. You can use your loan proceeds to fund a business expansion or pay down debt.
Loan amounts can vary based on a variety of factors, such as:
– Stock price
– Number of shares you own
– Trading volume
– Term length
Consistent stocks can be eligible for higher loans; while more volatile stocks could potentially be worth far less.
This method of borrowing is perfect for people who need access to extra capital, but who cannot or will not sell their shares.
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.