Share Loans

How Does A Stock Loan Work?

Stock loans are a loan secured against shares in a publicly-traded company to secure the loan financing. It is an easy and efficient way for individuals, institutions, large well capitalized companies and business owners to access the value of their stocks and shares without much fuss and without having to wait too long for the money.

A Loan Against Shares can be a critical capitalization source for entrepreneurs wanting to use this money to expand their business or to even plug a temporary hole in their cash-flow. A stock loan is a great financial lending resource they can use to gain quick access to fund their business operations from.Stock loan amounts are usually determined by a loan to value (LTV) ratio which means the loan amount may be equal to 60% of the value of the shares needed to secure the loan. The LTV is usually determined by the strength of the stock and by what volume is trading each month. The Pledged Share must have a minimum trading volume which is is at least 250,000 shares must be traded over an average of 30 days. This enables the stock loan lender to establish how much they will lend the applicant looking to loan money against the shares in their portfolio.There is a lot of different angles to the stock loan lending criteria, the maximum loan amount available to a borrower can depend depends on factors such as:

• Stock Market conditions.
• Historical shares and stock prices and volume performance.
• Total number of shares owned by the investor or company looking for a  Stock Loan.
• Market sector sentiment in the current investment climate.
• Individual criteria.

Why Would companies or Investors Need A Stock Loan?

The companies or investors ability to convert a portion of the current stock market market value of securities into cash without selling them outright is an extremely attractive option for many shareholders without having to actually give up their shares. With that equity unlocked from their stock portfolio holding, individuals and business owners can access the liquidity they need with ease and without visiting the bank. Banks dont tend to offer stock loans to companies as they would to large institutions and this is where the private institutions step in to fill this gap in the market.

What Are The Benefits of Taking a Stock or Securities Loan?

• Interest only payment option — No ambiguous or hidden charges; stock loans are an interest-only transparent loan option. There are no never-ending charges that seem to extend the credit unnecessarily.
• Accessible — Stock loans are available to almost anyone but mainly to institutional investors and company owners. You don’t need a credit check to access one for your individual or business needs. The process is painless and straightforward, and your money is delivered to you most conveniently.
• Stock Loan Liquidity — Stock loans are a fantastic easy option when an individual or business owner needs fast stock financing option to release equity. It turns equity into cash with a lot more ease than banks can offer.
• Lender Privacy — It provides borrowers with a trustworthy source of capital and all transactions are private and kept in strict confidence.
• Competitive Pricing— Stock loans offer you competitive and flexible interest rates usually less than 3%. You typically receive better terms than you would get from a traditional bank loan as the lender has your assets to lend against. The lender can liquidate these in the case of a default.

What Are The Benefits of A Stock Loan?

• Liquidity – Stock loans are a fantastic option when an individual or business owner needs a quick financing option. It turns equity into cash with ease.
• Interest-only – No ambiguous or hidden charges; stock loans are an interest-only, transparent loan option. There are no never-ending charges that seem to extend the credit unnecessarily.
• Accessible – Stock loans are available to almost anyone. You don’t need a credit check to access one for your individual or business needs. The process is painless and straightforward, and your money is delivered to you most conveniently.
• Privacy – It provides borrowers with a trustworthy source of capital. All transactions are private and kept in strict confidence.
• Competitive – Global Stock loans offer you competitive and flexible interest rates. You typically receive better terms than you would get from a traditional marginal loan.

https://www.platinumglobalbridgingfinance.co.uk/securities-lending-and-securities-financing/