Stock Loans

What Is Stock Loans?

Stock loans allow you to borrow against your publicly traded stock portfolio without selling your shares, providing liquidity while maintaining your investment positions.

Key Features

• Non-Recourse Loans: Borrow against stock value without personal liability.
• No Credit Check: Approval based on stock value, not credit score.
• Maintain Your Positions: Keep your shares and benefit from potential gains.
• Fast Funding: Loans funded within days of approval.
• Flexible Terms: Various loan-to-value ratios and terms available.

How Does Stock Loans Work?

Stock loans use your publicly traded shares as collateral. The lender evaluates the stock value, volatility, and trading volume, then offers a loan at a specific loan-to-value ratio (typically 40 to 70 percent). You receive cash while keeping your shares. If the stock value drops significantly, you can walk away from the loan in a non-recourse arrangement.

Benefits

• Access cash without selling your stocks
• No credit check required
• Maintain your investment positions
• Fast funding process
• Non-recourse options protect you

Pros and Cons

Pros

• Liquidity without selling assets
• No credit check
• Keep upside potential
• Fast approval and funding

Cons

• Interest rates may be higher than traditional loans
• Stock must meet minimum value and trading volume
• Lender holds your shares during loan term
• Margin calls possible if stock drops

Who Is Stock Loans Best For?

Investors who need liquidity but want to maintain their stock positions and avoid capital gains taxes from selling.

How to Use

Submit your stock portfolio details. The lender evaluates and offers terms. Transfer shares to lender account.

Frequently Asked Questions

What stocks qualify? Most freely traded stocks on major exchanges qualify. Pink sheet and OTC stocks may not.

What is the minimum portfolio value? Most lenders require a minimum of $25,000 to $100,000 in stock value.

Individual results may vary.