Stock Loans

Is your firm a listed public stock company (including a senior executives of the public company) or are you an investor and need access to inexpensive and secure loan financing for any reason? A Stock Loan is a low cost option to consider.

Stock loans are securities-based loans where the terms of the loan are governed by a “Securities Lending Agreement,”?which requires that the borrower provides the lender with collateral, in the form of stock or other securities, of value equal to or greater than the loaned securities plus agreed upon margin.?Companies?(and or their executives) pledge stock or securities as collateral for the loan.

Loan Overview

No Upfront Fees
Loan Details:

  • Lending Area Worldwide
  • Approvals: same day or within 24 hours
  • Interest Rates: range from 1% to 8% per annum, which depends on many factors. Most loans are at 4% to 5% interest rate
  • Loan-to-Value (LTV): 40% to 90%, average LTV 50-80%
  • Loan Amount: USD $5million to $5 billion
  • Non-Recourse: the company stock is the only security
  • Origination Fee: 3% to 6%, paid at closing from loan proceeds, most loans are at 3-4%
  • Payments: interest only; monthly or quarterly payments
  • Prepayment Penalty: none
  • Processing Time: loan funds within 12 days from date borrower signs offer
  • Repayment Term: 3-years (no term limit on credit lines)

For Loan Approval?(Less than 24 Hours)

Advantages of Stock Loans

With stock loans, there is no danger of losing money with short-term market fluctuations, either (at least, no more danger than usual) because you don?t cash out your stock.?Most stock loan companies use hedging strategies to protect the stock and its value.

If you want to have the freedom to use funds to invest in other ways and diversify your portfolios while maintaining many of the benefits of holding the stock contact us for more information.