How is a Stock Loan Different from Other Forms of Credit?
A stock loan is when you borrow money by offering the stocks you have as security. This type of securities-backed lending was first performed in the 1960s in London. It later became more popular in the 1980s. Today, it is still a common way for all kinds of investors to get access to the funds they need.
Here at Stock Loan Solutions, we offer you the chance to get quick access to cash. You can use the shares you currently have to pay off debt, cover expenses, or expand your business.
Learn more about the benefits of stock loans, how they work, and why you should enlist us as your lender.
Why Should I Consider Getting a Stock Loan?
Do you need quick access to cash, but don’t want to give up any of your assets? A stock loan lets you borrow money against your shares in companies trading on the BME. When your loan period is up, we’ll transfer full ownership of your shares back to you.
Check out some other benefits of getting a stock loan:
- You’re free to use your loan proceeds however you see fit: A lot of loans require that you use the funds for very specific purposes. For example, an auto or home loan can only be used to purchase a vehicle or a home, respectively. On the other hand, a stock loan offers the flexibility you need. You can use the money you borrow for practically anything like paying off debt and expenses.
- You aren’t exposed to volatile interest rates: Standard bank loans are often seen as safe bets, but they come with variable interest rates. While you may start off paying low interest, interest rates on bank loans can experience high peaks. We offer our stock loans at fixed rates, so you’ll always know what to expect.
- You can better manage some risks that come with borrowing money: Borrowing money always comes with some kind of risk, but a stock loan can help you better manage this risk. We offer different repayment terms and fair interest rates.
You won’t damage your credit if you default: We offer very reasonable interest rates , so you likely won’t fall behind on your payments. If you happen to default on your stock loan, your credit history will not be affected. The only assets tied up in this kind of loan are your BME shares. We’ll simply sell your shares to pay off your debt.