 This kind of loan is mostly granted to stock brokers who are in the need of money
to invest at the time when the market is bullish. They are required to mortgage some security with the bank and they pay the loan when the prices of stocks soar. This loan is not given for a fixed period of time. This loan is also given by one broker to another to cover a customer short sale.
Benefits of Stock loans
- Non-taxable
- No margin calls required
- Up to 90% LTV
- You will benefit from the future growth of your stocks
- NO Reporting to SEC or shareholders is required in most cases
- 6-month review available to see if you can get additional money for your stock
- Enormous amount of flexibility to do as you wish with your holdings or cash
- In most cases, there is no pre-payment penalty
- Stock analysts or short sellers won’t be aware of your private loan dealings
- Interest-only payments
- Flexible terms
- Fast turnaround times to funding
- Large loans are no problem
- Retain dividends
|
