Advantages of Stock Loans
Stock loans are also referred to as securities lending is a function within a brokerage operation to lend shares of stock or other types of securities to individual investors, professional traders and money managers to facilitate short sales transactions. By choosing stock loans you will be able to have many advantages as there are many advantages associated with stock loans. There are many benefits of stock loans and below are some of the benefits that you will be able to get when you choose stock loans.
One of the most important benefits of stock loans is that it is fast as they are funded quickly. By choosing stock loans you will have the advantage of not waiting for long for the loan to be processed as stock loans are usually funded within a week or less. You should choose stock loans especially in cases of emergency where you need a loan as soon as possible because stock loans are processed and funded quickly.
Loan maximization is one of the benefit of stock loans. If you choose stock loans you will have the advantage of being able to obtain up to eighty percent of your stock’s value in the form of securities loan. Most of the loans have loans don’t exceed fifty percent and that is why you must choose stock loans so as to have loan maximization.
The third benefit of stock loans is that stock loans are usually non-recourse. If the value of your stock falls below the amount of your stock loan it is possible to keep the stock loan proceeds and waive the stock and this is one of the benefits of stock loans.
The fourth benefit that you will be able to get when you choose stock loans is that stock appreciation. By choosing stock loans you will have the advantage of your stock appreciating over the long period. Since stocks appreciate stock loans will allow you the benefit of the prices go up.
Another advantage that you will be able to have when you choose stock loans is flexibility. By choosing stock loans you will have the advantage of flexibility you as you will be able to use the loan for any purpose and this convenient as you will have no limitation and you can get a stock loan to do whatever you want. To conclude, when you choose stock loans you will be able to have many advantages as compared to other loans and the above context highlights some of the advantages of stock loans.