Do you have stock but don’t want to sell it? Do you need cash now and want to use your stock as collateral for a loan but don’t want to lose your investment? Do you have bad credit but need cash now? If you answered yes to any of these questions it sounds like you’re a good candidate for a non-recourse stock loan.
Many companies claim to offer loans against stock collateral but very few companies are able to back up their claims with cold hard cash. Most stock loans have the same basic requirements: the symbol must trade at least 50,000 shares per day (this qualification is very easy for most public companies), must be a major platform like OTCBB, NASDAQ, London Exchange etc (basically anything but Pink Sheets, but then again, who in their right mind would invest in pink sheets?) and the company needs to have some solid trading history; that’s it!
Anyone that has stock can easily use this security as collateral for a very reasonable loan that can extend up to 10 years and sometimes even longer. If you own stock, you should never feel hard up for cash. You can use your stock to collateralize a loan with an LTV of 60% to 80% depending on the stock.
Use your stock as collateral for a business loan, pay off your credit cards, take a vacation. If you are a principle in a public company and your business needs fast cash use some of your company stock for that much needed cash for corporate expansion, equipment or executive bonuses.
Thursday, June 3, 2010
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