Loan Against Securities - Stock Loans
Stock Loans and the Use Of Securities
Loans against securities are an effective and powerful tool to stabilize finances, especially when the borrower is facing a short-term shortage of ready funds. By taking out a non recourse stock loan, borrowers can assure themselves of a stable and effective lending instrument that will meet both their short and long-term needs. E-StockLoans.com is a corporation focusing on providing these forms of stock lending instruments to qualified borrowers.
A stock loan involves the pledging of a certain amount of stock as collateral to a loan. In this way, a borrower can make use of a long-term investment (their stocks) to provide immediate financial assistance in the form of the stock loan. Securities lending, unlike other forms of loans, does not require the use of property, such as real estate as collateral. This allows the borrower to maintain the flexibility needed to meet changing financial circumstances.
Stock lending instruments from E-StockLoans.com have a number of advantages. The approval process is streamlined and fast, and a loan can be closed in as little as 5 days. By being collateralized with the value of the pledged stock, a loan does not require an employment or income check on the part of the borrower. In addition, loans against securities have very low interest rates that are fixed at 3 to 5 percent. Finally, the principle of the loan is due only at the maturation of the loan, and the loan can be extended if desired. Stock loans thus can be quickly secured when needed, while allowing the borrower know exactly what type of financial obligations he or she is incurring.
Securities lending also provides a very high return on the pledged collateral. The loan to value (LTV) ratio for stock lending instruments secured through E-StockLoans.com can range from 50 to 75 percent, providing the borrower with a very high value loan based on the pledged stocks. In this way, long-term stock investments can be converted into readily available funds via stock loans when needed.
Finally, the nature of a non recourse stock loan allows the borrower to establish a floor value for the pledged stock and should it drop below that, default on the loan without further penalty or damage to his or her credit rating. This provides the greatest possible flexibility in the face of unexpected changes in the value of the stock.
E-StockLoans.com is dedicated to providing effective stock loans to borrowers of all types. By working with our skilled and dedicated staff of financial experts, a borrower can be assured of finding the most effective type of securities lending instrument for his or her needs.
