Usually, when borrowers obtain funding from financial institutions such as banks, they are often required to provide a collateral. Some of the assets borrowers often pledge are such as homes or vehicles. However, it is possible to receive funding by pledging stock as collateral. With StockLoan Solutions, therefore, you can easily assess funding by providing your stocks as collateral. The amount you get will, however, depend on some factors such as price, volatility as well as the number of shares.
Basically, a stock loan allows the borrower to offer stock as the collateral. When the borrower is unable to repay the loan, he will only lose the stock for non recourse stock loans. When you want to get some capital, however, StockLoan Solutions can provide the money you need for to finance your project.
Once the non recourse stock loans period is over, a borrower may choose between some options. First, the borrower can opt to extend the loan. Extending the loan will only happen when the lender accepts the borrower to do so for another fixed period. If the lender does not want to extend loan extended, the borrower receives the stock back. However, the borrower has to repay the loan in full to get the stock back.
For any upside profits, the borrower may cash in such profits. A profit is realized when the stock values go above the loan amount due. The borrower may, however, opt to get a cash payment for such profit.
Again, the borrower could choose to walk away with non recourse stock loans when the value of the stock declines. A loss will arise if the pledged stock falls lower than the loan amount due. In such a case, the customer can simply walk away and the lender takes the stock. Once the borrower walks away, the lender will not have another means of recovering the money.
Why take a stock loan.
When you use stock to get financing from StockLoan Solutions, you could enjoy some benefits. First, there is flexibility in taking loans with stock as the collateral. The flexibility of stock loan is seen since you can use the loan for a different purpose. You are not restricted on how you use the stock loan proceeds unlike in a mortgage. Another benefit of stock loans is that they are fast. Usually, a borrower gets the loan faster within several days. At StockLoan Solutions, you only need to transfer the stock and agree to the loan terms.
Basically, when you own stock and want to get funding, non recourse stock loans at StockLoan Solutions provides a good option to get financing.