A stock loan is the lending of funds collateralized by shares of a publicly traded stock, domestic or foreign. It gives the borrower access to the liquidity of the assets without actually selling the stock. The term of the loan is typically two to five years and the shares are returned upon repayment of the loan.
In a volatile market like we are all experiencing today, a stock loan allows you, the borrower, the flexibility of letting your stock/mutual fund portfolio work for you. The borrower gets to benefit in the event of a market downturn, yet still retain upside potential should the price per share increase during the term of the loan. If the price of the stock significantly decreases, you can walk away from the loan, and if the stock increases, you can pay off the loan and keep the upside.
Benefits of a Stock Loan through Capital Stock Lending
- Flexible Lending Terms: Several months to several years
- Inexpensive: Below market, interest only payments
- Non-Recourse: Never at risk for more than the pledged assets
- Use of proceeds: No Restrictions, except purchase of more stock
- Simplicity: NO credit qualifying or intrusive loan approval process
- Quick: Loan closings typically a week or less
- Access to Capital: from $50,000 to $30,000,000
- Upside: Borrower can benefit from asset appreciation
- Great for individuals and businesses
Examples how you could use this loan:
- Customer needs cash for down payment, to take advantage of purchasing low priced foreclosures.
- Customer needs cash to help a relative escape foreclosure process.
- Customer needs cash to purchase 2nd home which does not meet conventional underwriting guidelines, e.g. non-warrantable condo, condotel, or a cabin with no heat.
- Customer needs cash to finance daughter’s wedding and does not want to sell their stock.
- Customer needs cash to expand their business. (They can use their personal stock or their company’s stock as collateral for this loan.)
- Customer needs cash to pay off high interest rate loans or credit cards, and does not want to sell their stock.
- Customer needs cash for any reason, but their low credit scores do not allow best interest rate at bank.
New: Block Stock Purchases
Capital Stock Lending has recently partnered with a leading lender in the industry who will purchase large blocks of freely traded stock from small publicly traded companies at a 20% – 40% discount. If you are a publicly traded company in need of a quick cash infusion, contact us today to learn more about Block Purchases.
Here’s how the loan process works: Click here
For More Information contact:
info@capitalstocklending.com
We are the PREMIER source for stock and mutual fund portfolio loans