As a matter of fact, borrowers are required to pledge collateral to obtain financing from financial institutions like banks. In most case, people produce vehicles and home as collaterals for loans. You can, however, use your stock as security for a loan. At StockLoan Solutions, you pledge your stock to easily get funding. 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. When the borrower is unable to repay the loan, he will only lose the stock for non recourse stock loans. Therefore, if you want to raise some capital, StockLoan Solutions will provide the amount you want for your project.
When non recourse stock loans come to an end, a borrower has certain options. First, the borrower may extend the loan. The borrower will only extend the loan if the lender accepts him to do so. If the lender does not want to extend loan extended, the borrower receives the stock back. The borrower will only receive the stock back after repaying the loan fully.
The borrower may, however, choose to cash in the stock profits when the value of stock increases. This will, however, happen if the value of the stock used as collateral have increased and is higher than the total loan due together with the interest. When such a situation occurs the borrower has the option of cashing in the profit.
Again, the borrower could choose to walk away with non recourse stock loans when the value of the stock declines. Usually, you will get a loss on the pledged stock when the value falls below the due loan amount. When such a situation arises, a borrower may walk away for the lender to take the stock. When this happens, the lender cannot recover the money through other ways.
Why take a stock loan.
Upon using stock to get a loan from StockLoan Solutions, there are several benefits that the borrower enjoy. First, there is flexibility in taking loans with stock as the collateral. 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. Another benefit of stock loans is that they are fast. Usually, a borrower gets the loan faster within several days. You will only need to agree to the terms of the loan and transfer the stock to get the funding.
When you want some funding, StockLoan Solutions is a good option for non recourse stock loans.