What's the Point of a Stock Loan?
With a stock loan, there’s no need to sell your shares or dispose of them. A simple process gets you access to a stock loan:
- Transfer your shares to the lending firm. The lender gives you the full loan amount to be used to cover personal or business expenses or for the reasons you need the loan.
- You make interest payments to the lender until the loan term is complete.
- When you have paid off the loan, the lender transfers ownership of the shares back to you.
This form of lending is unique because any default is secured by your shares, not your personal or business property. This is known as a non-recourse loan. If you default on the loan or cannot complete the terms, your credit score will not be negatively impacted.
Stock loans are popular with investors because they’re non-recourse and efficient. They allow you to get your money fast without the need for a long underwriting and credit check processes.
NASDAQ Stockholm AB (XSTO) Loans
Formerly known as the Stockholm Stock Exchange, the NASDAQ Stockholm AB operates in Frihamnen, Stockholm, Sweden. It was formed in 1863 and continues to be the primary trading exchange for all Nordic countries. Among listed companies on the NASDAQ Stockholm AB are Evolution Gaming Group, Volvo, Boule Diagnostics, Arctic Paper, and Lundin Gold.
The Stockholm Stock Exchange was the first European exchange to allow trading by remote members.
Stock Loan Solutions provides securities-based lending for shares traded on the Stockholm Stock Exchange with low-interest rates and reasonable terms. The closing time is typically around 3-6 days, which provides you with immediate liquidity while retaining ownership of your stock.
Sweden is a Nordic country that consists of thousands of islands and lakes. Its most prominent and largest cities are Stockholm, Gothenburg, and Malmö. Sweden is the largest country in Northern Europe.
Sweden is famous for its majestic landscape, friendly citizens, mild summers, and freezing winters. It’s also the home of iconic industry leaders like IKEA and Spotify as well as sleek Swedish interior design.
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.