In the CSL website, we have tried to give you a general overview to securities loans, and their advantages, but we want to take a moment to express our excitement in working with these loans. Yes, it’s fulfilling because we are helping people and companies to access funds to achieve their goals and objectives, but particularly, it’s exciting because it is a relatively stress free process for them.
No Credit Check, No Recourse, No Employment Verification, Non Qualifying – all because the customer is just utilizing existing assets – part of their securities portfolio. What a change, and relief, from the current rigors of mortgage financing requirements.
We first became interested in this industry because of Chuck’s experience in obtaining a stock loan. Here’s his review and opinion:
“I have an ownership interest in a mid size collection company and wanted to provide funding for a franchise opportunity that was being offered to us.
Trying to secure a business loan was becoming a lengthy and expensive process due to recent changes in the credit market. But because my stock portfolio had lost some value in the recent downturn, I really didn’t want to sell stock just to come up with the needed capital. I was referred to the securities lender for a loan using a portion of my stock holdings as collateral .The process was simple. I sent copies of my portfolio to the lender for review, and within 48 hrs had a loan commitment for the needed funds, at a much lower rate than what was being offered by the banks.
I also get the benefit of using the dividend payments each quarter towards my interest making the effective interest rate even lower.
At the end of the loan term I have the option to either re-new the loan or, if I have had a nice increase in the value of my portfolio, I may sell the stock and pay off the loan.”
Obtaining capital financing has become more of a challenge in today’s banking world. Even highly qualified individuals and profitable companies will find it a daunting task. Lower loan to values and more restrictive loan guidelines have choked off many of the more conventional sources of funding. Capital Stock Lending, along with our lender partners provide a loan program based on the equity in your stock portfolio.
We’re excited about this process, and think you will be too!
Regards,
Cindy and Chuck