Below are various frequently asked questions. that we have received. If you do not find the answer to your question please ask it here.
In most cases the loans are non-title transfers meaning the loans remain in your name even when held with the custodian. Please be aware that there are certain cases in that loans will have to be title transfer due to an elevated amount of risk.
Yes, you can! our lenders are not concerned with your credit or your credit history. Our lenders look at the stock you have as collateral. The lenders decide to give you money based on the stock you pledge as collateral, if you decide not to make payments then you will forfeit the stock. It is that simple.
That is a great idea! Think about it, If the economy slips and you cannot make mortgage payments you could lose your home. If you take out a stock loan and pay off your mortgage, you cannot lose your home. The reason is that this is a non-recourse loan the lender can only go after the pledged stocks, nothing else. Should you decide to stop making payments on the loan you will lose the stock, but if the economy, sudnnly turns chances are the stock may not be worth enough to keep paying the loan anyway.
When you pledge your stocks they are held in a custodian account. They are locked out and cannot be sold or traded. They cannot be sold because they are collateral for a loan, once the loan is repaid you get your stocks back. They cannot be traded because the loan was based on the value of a particular stock.
Our loans are from direct private lenders, they are private discrete and do not affect your credit.
We are not advisors. If you are thinking of locking up stock for say a five-year loan, it would make sense to use stock that you want to hold for the long term. Most people that buy long term stocks look for great companies.
Depending on wher you live you may be requested to provide different documents. In general you would need a brokerage statement showing your name with the shares to be pledged. You would also need to provide at least one government-issued ID such as a passport ID card or a driver’s license. If the shares are corporate then you would need to provide the identification of the person with signing authority along with the corporate documentation that specifies who the singing authority is.
Should the price of the stock go down in value, you can decide to continue paying the loan if you believe that it will go up again or you can simply walk away. You will lose the stock, but you will keep the money you recieved.
Should the value of the stock rise you get to keep all the appreciation; the stock is yours, you keep all of the appreciation and dividends.
When we provide terms to you, we stand by them. We can only provide you serious terms when we know what the stock is, where it trades and the loan request is. providing terms and conditions without us knowing what the stock is not a serious way to conduct business, it would be a waste of our time and yours.