Normally, borrowers have to offer collateral to get funding when borrowing from banks and other financial institutions. Some of the assets borrowers often pledge are such as homes or vehicles. Today, however, you can borrow against your stock. By pledging your stock as collateral, StockLoan Solutions easily provide the loan you want. The amount you get will, however, depend on some factors such as price, volatility as well as the number of shares.
Normally, the borrower pledge stock as collateral to receive funding. For non recourse stock loans, the borrower only loses the pledged stock if he cannot repay the loan. 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. One of the options is the borrower extending the loan. The borrower will only extend the loan if the lender accepts him to do so. When the lender is not willing, the borrower gets his stock back. However, the borrower has to repay the loan in full to get the stock back.
The borrower may, however, choose to cash in the stock profits when the value of stock increases. 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. The loss arises when the pledged stock falls below the amount due on the loan. In case of a loss and the borrower walks away, the lender takes such stock. When this happens, the lender cannot recover the money through other ways.
The Advantages of stock loans.
The borrower enjoys several benefits by getting StockLoan Solutions loan and pledging stock as collateral. One of the benefits is flexibility that comes with taking a stock loan. Basically, you can use the stock loan for various purposes. There is no restriction on the way you use the proceeds of stock loan like in the case of a mortgage. Stock loans are also fast. Basically you get a stock loan in a matter of days. To get a stock loan at Stockloan Solution, you are required to transfer the stock as well as agree on loan terms.
When you want some funding, StockLoan Solutions is a good option for non recourse stock loans.