When thinking of owning a home, starting or expanding your business as well as buying an asset for example a commercial building and you need financial help, one of the best methods that can help is the use of a stock loan. Log books, title deeds as well as other property based collateral must be surrendered to financial lenders in other forms of loans unlike the stock loans where collateral is in the form of free trading security. From three to about seven years, you can repay a stock loan whose collateral is eighty percent of current stock.
For you to get this stock loan, you are not required to come with a report on how you performed in previous loans or employment approvals or your income reports. The only requirement in stock loan financing is completing the necessary paperwork and then rest assured that the loan will be processed from between five to seven days. Regardless of status of being self-employed or employed, you can be eligible for the loan. Penny stocks, mutual funds, foreign stocks and etfs are some of the things that are eligible as forms of collateral.
If the worth of your stocks fall below the required eighty percent of the required stock needed as collateral, the borrower can always top up the remainder with money or another stock or security to make your loan request valid.In stock loans, the borrower can simply walk out of the loan and in such a scenario, the lender keeps the collateral.Stock loans are non- recourse loans and the borrower is not liable as a person and even their credit worthiness may never be affected.
Not calling the borrower for further compensation even when their collateral does not cover the full amount of the loan they defaulted is a characteristic of non-recourse loans. Benefits accruing from rise in stock value, interests and dividends belong to the borrower and not the lender Once the borrower defaults in payment at the stipulated date, the financial intuition that has lent money is the one that benefits from dividends accruing from stocks. There are very many fears among borrowers when the stock asset they want to place as an asset keeps on appreciating in value for the fear of losing the asset.Since there is no formal information on this form of loan facilities, there is no need to report any of the incidences to the credit bureaus. The purpose of this writing is to educate people of the importance of learning and understanding the stock loan financing concept.Interest charged from stock loans is charged on a quarterly basis and this is advantageous to the borrower.