An Easy Plan

We, at Worldwide Stock Loans, completely understand the importance of your portfolio that you’ve created with the help of a long-term investment strategy. We provide convenient stock loans service to let you get cash in hand immediately using your stocks as collateral.

The steps to apply for sock-secured loans at Worldwide Stock Loans is a straightforward process that involves the following 7 steps:

Step 1: Initial Request

First of all, the borrower of a loan on stocks needs to submit an initial request to us. During this step, the borrower needs to submit specific important details such as the ticker symbol, stock exchange, desired loan amount, and the number of shares that he/ she wants to keep as collateral. This step is crucial for the lenders to assess the eligibility of the borrower for a stock-secured loan. 

Step 2: Term Sheet and Documentation

After submitting the request for a stock loan/ loans, the borrower receives a written Term Sheet from the lender. It states all the relevant terms and conditions of the stock-based loans. After receiving it, the borrower needs to read it thoroughly for clear information and sign it. Now, the borrower has to submit this signed term sheet of securities-backed lending to the lender again along with a copy of their brokerage statement and a photo ID. This submission is essential to validate the identity of the borrower to avoid any financial repercussions in the future.

Step 3: Know Your Client (KYC) Form

For all the stock loan companies, the KYC (Know Your Client) step is the most significant. Here, the borrower receives a form from the lender where the former has to fill up all the required personal and financial details. This step ensures that both the parties are agreeing on the related risks of stock-secured loans. Moreover, the KYC step enhances the security and integrity of the transactions of all collateral loans, stock loans in particular here.

Step 4: Master Loan Agreements

After the KYC form, the lender prepares a Master Loan Agreement. This agreement contains all the information regarding the rights and obligations of both the borrower and the lender. And, both parties have to sign this as proof of mutual formal agreement. After the Master Loan Agreement, it commences share-backed finance officially.

Step 5: Securities Transfer

Now comes the most significant step of transferring the pledged securities as collateral by the borrower. During this step, the stocks of the loan borrower go to the lender or a designated custodian bank/ transfer agent. This step makes sure that the collateral (stocks in this case) stays safe keeping the interests of both the lender and the borrower.

Step 6: Custodian Agreement (if applicable)

If your stock-secured loan involves a custodian (not applicable on all stock-based loans), this step is also essential. It is a three-way agreement among the borrower, lender, and custodian. It mentions the roles and responsibilities of each party. Also during this step, the process of preparing a closing statement takes place. This closing statement contains the final terms and conditions of the transaction of the securities-backed lending. After that, the borrower submits his/ her shares to the lender directly or with a custodian bank/ transfer agent. This step is for security and transparency while getting a loan on stocks.

Step 7: Fund Transfer

In the end, the borrower receives the funds that are a particular percentage of his/ her submitted stocks. After the secured execution of all these six steps, the lender transfers the agreed amount to the borrower’s designated account. The borrower is free to choose any country for funds transfer. Also after receiving the funds, there are no restrictions on how to use the money. This feature of stock-based loans marks their very significant features of freedom and accessibility. 

By following these steps, you can get stock-based loans easily by using your stocks’ portfolio while still being the actual owner. 

Ready to get a stock loan?

Contact Worldwide Stock Loans today to assess your eligibility and enjoy numerous benefits from stock loans!