A stock loan is simply when you lend money against securities the client already owns. The result is immediate access to capital without selling or margining any shares for cash. It requires no personal guarantee on the loan and is secured by the stock portfolio; therefore. It is a true Non-Recourse loan. The only loan approval consideration is the value of the stock. The client's current credit is not an approval issue. Importantly, these loans are relatively inexpensive for your clients. You will be able to provide interest rates as low as 3% and provide a loan of up to 80% of the total stock's value.
There are also programs that allow a client to borrow from their restricted stock and also help shareholders of options and warrants to convert them into stock which eliminates the need to pay out-of-pocket, nor the need to sell shares to facilitate the cashless feature of the underlying security.
Transaction Size: $150,000 to Unlimited
Approval Time: Under 4 hours