Advantages of Stock Based Loans

 

According to reports, margin loans and stock based loans are becoming more popular. This rise in popularity has been thought to be due to the tight qualification and lending criteria that are attached to the more traditional lending methods. For people who do not qualify to get the traditional loans, there is a solution in the form of stock based loans that enables you to borrow money to raise quick capital. Banks also have higher interest rates. Using stocks as security or collateral for a loan has a lot of advantages to the borrower. They allow you to raise more capital from the same value of assets since they come with a higher loan to value ratio. They also come with fixed interest rates which provide certainty throughout the entire duration of the loan. If you are looking to learn more about the benefits of stock based loans, you cam to the right place. This site looks to give you all the details about the different ways through which you can benefit from using a stock based loan. Read more about it here.

 

Unlike with the case of traditional loans, borrowers have the possibility to enjoy a nion recourse feature. This is an option that makes it possible for a borrower to walk out of a stock based loan agreement whenever they feel like. It also has no bearing on the value of the stocks. If a borrower decides to explore this option, they get to keep the initial loan proceeds without being obligated to the lender in any way.

 

There is no prequalification needed. Unlike the case with traditional loans, a borrower does not have to go through the process of pre-qualification. When requesting the money, you do not have to state any specific purposes you have for it. This allows you to venture in an investment you are interested in without having to give any explanations to the lender about the use of the money. To read more about the benefits of loans, go to http://www.ehow.com/how_5968570_price-commercial-loans.html.

 

Loan maximization is a possibility. When applying for these loans, it is possible for you to get up to eighty percent of the value of your stock. In other cases, you can only access up to fifty percent.

 

They are convenient. When applying for a stock loan, you do not have to worry about an extended waiting period as they are funded in very short periods. You also get to benefit from the appreciation of your stock if the price goes up in the long-term. Make sure to read more about Stock Based Loans here!