What is a Stock Loan?
A stock loan is a type of loan that’s backed by a borrower’s shares in a publicly traded company. The form of security differs from traditional loans which typically require a personal guarantee or some form of personal property to secure the loan.
At Stock Loan Solutions, we will lend you money against the shares you have in companies that trade on the JSE. We serve Johannesburg investors and help them get the funds they need to meet their financial goals.
What Are the Benefits of Stock Loans?
One of the nice things about a stock loan is that you can use the cash however you see fit. You won’t find this with all types of credit, as a lot of loans have certain restrictions when it comes to how you spend the money.
Stock loans offer many other benefits, some of which include:
- Instant cash: If you need instant access to funds, a stock loan may be the kind of credit for you. While you can sell your shares for cash outright, this will create a taxable event. To avoid this, you can get immediate liquidity from a stock loan.
- Fixed interest rates: Other loans’ interest rates will vary depending on market conditions. When you apply with us, we can lock you in with the most optimal interest rate available. You’ll pay the same percentage until your loan term is completed.
- Portfolio diversity: While some people use the cash from stock loans to pay off expenses and debt, others use it for funding new business opportunities. If you need cash, you shouldn’t have to give up some of your long-term investments. Instead, a stock loan will let you diversify your portfolio while you continue to maintain your long-term positions.
- Risk management: If you want to minimize the risks that come with borrowing money, a stock loan is a great option. Other types of loans can come with incredibly high-interest rates, especially if you have a bad credit score. We offer various repayment terms and reasonable interest rates so you can borrow with confidence.
Why You Should Work with Us
We have the necessary experience to ensure a smooth transaction for borrowers with JSE stock loans. As direct lenders, we never charge application fees or perform credit checks. We strive to make it as easy as possible to provide our clients with stock loans between $50,000 and $5,000,000.
Our team can offer you 12, 24, or 36-month repayment periods. This customer-focused lending is meant to give you the flexibility you need to meet your financial goals on your own terms.
If you default on your JSE stock loan, you can use your shares to repay the principal amount. This won’t impact your credit score so your financial future won’t be in jeopardy.
Every transaction you perform with us is private and confidential. We’ll never share the details of your loan with anyone, so you can rest assured when you make us your lender.