Why Stock Loans are Great Low-Risk Loan Options
Are you sick of high-risk loans that keep you on edge until the transaction is complete? Fortunately, if you need cash now, a high-risk loan is not your only recourse. It’s possible to get the money you want in hand with a low-risk stock loan.
When you choose a stock loan, your current investments, rather than your house, car or other assets, serve as collateral for the loan. This type of loan is particularly ideal for those who cannot sell their stock right away but need capital immediately.
Stock loans are increasing in popularity around the world for a number of reasons. Here’s a rundown of why stock loans are great low-risk loan options.
Let’s get started!
How Does This Type of Low-Risk Loan Work?
Stock loans allow you as an investor to maintain your current stock while still being able to obtain cash for purchasing alternative investments. These types of loans are especially handy if your portfolio is stock heavy and you would like to achieve more diversification.
Your loan amount will depend on the characteristics of your collateralized security, such as the quantity of shares, volatility and price. All you have to do is transfer your stock to the lender and make interest payments for as long as you have the loan. As soon as you have paid the loan back in full, you will receive your stock back.
It’s that simple.
Flexibility and Desirable Interest Rates
One of the biggest benefits of a stock loan is that with the right lender, you’ll receive a competitive rate based on the prime interest rate at the time you take out the loan. You can enjoy various loan terms ranging from 12 months to 36 months, for example.
On top of that, your stock loan is a non-recourse loan. In other words, you can walk away from it anytime you wish without having to worry about ruining your credit score. A personal guarantee is not required for a quality lender’s stock loan.
What’s especially great about stock loans is that if you end up defaulting on the loan for one reason or another, you don’t have to worry about losing all of your personal possessions. You can’t beat that.
Confidentiality
When you choose a reputable lender, your loan process will be confidential and private. You can expect your loan information to be stored in a secure processing center so that you have one less thing to worry about as you pursue a loan.
Quick Funding
If you need money quickly, you can’t go wrong with a stock loan. Top-notch lenders underwrite their loans in-house, which means you can reach closing faster than you would at a bank or other financial institution.
Once closing is finished, you’ll get your funds wired into your bank account within a couple of days.
No Need for a Credit Report
The best part of pursuing a stock loan? You don’t have to worry about going through an annoying credit check.
As long as you have stock that can serve as collateral, you’re good to go.
How We Can Help
We offer hassle-free stock loans that can help you to get the cash you need without waiting months or weeks for it.
Contact us to learn more about how these low-risk loans can benefit you in the long run.
