Stock Loans 101

STOCK LOANS 101

Do you own stocks and would like to borrow against them? Most traditional lenders will not lend on stocks and most securities on foreign exchanges are not considered “marginable”. We can place a loan stock on almost any publicly traded stock.

We offer non-recourse stock based loans that do not require the transfer of control over the securities nor the sale of any of your securities prior to funding. Our stock secured loan program keeps ownership of the securities with you, in a specialty custodian account. A simple lender lien executed by the borrower, lender and custodian ensures the lender’s interest for the term of the loan.

You simply have a new brokerage account at a recognized custodian institution. The custodian account will pay all dividends to you, and you retain stock voting rights. The custodian acts as an intermediary between the lender and you. A custodian is typically a large bank or a brokerage house.

We offer very competitive and flexible terms customized for each borrower. All loan on stocks are non-recourse, which means no personal liability to you in the event of default. The stocks you own are the only collateral required to be pledged for a low interest loan

Basic Terms and Requirements of our Stock Loans:

  • Minimum Loan Amount is USD $ 100,000 Maximum Loan Amount $ 500,000,000 USD
  • Your stocks must be free-trading. Suspended trading or Restricted stock is not eligible.
  • Private stock, or stock that is not trading on a major securities exchange, is not eligible.
  • Execute Loan and Lender Lien Agreements
  • Shares cannot be assigned or liened by a third party while with custodian
  • Non-recourse stock loans are available to all world citizens

Typical Stock Loan Terms:

  • Loan to Value (LTV): up to 80%
  • Fixed interest: 3.5% to 6 % Paid Quarterly
  • Non Recourse
  • Term: 2-10 Years
  • Dividends: Paid to you

SENIOR LOAN ADVISOR

Grant Hodgins, B.Comm

Grant has more than 30 years Public and Private Business experience holding positions of CEO, CFO, and President in numerous companies. His experience also includes more