Why Borrowing Against Stocks is For Everyone
A non-recourse stock loan may sound like the stuff of high-powered investment
bank-ers tinkering with all the complex architecture of the finance industry. But it’s
not. In fact, borrowing against stocks is really simple, and very accessible.
Here are just a few of the many benefits of borrowing against stocks:
The uniquely low-risk nature non-recourse stock loans make it great op-tion for all kinds of investors. If your stock rises in value, you can simply pay off the loan and reclaim your appreciated stock. If your stock drops in value, you can walk away from the deal. Either way, you leave without losses.
2. No personal liability.
Non-recourse loans, by definition, carry no burden of personal liability for the borrower. Your only collateral is your stock portfolio.
33. No hidden costs.
There are no application or appraisal fees, nor any upfront costs. The only thing you are putting up as collateral is your stock or portfolio.
4. No risk to your credit.
If you’re a savvy business-person, you’re probably wonder-ing if borrowing against stocks poses any risks for your credit score. You can sleep easy knowing that the answer is absolutely not.
5. Accessible to anybody with a qualifying portfolio.
When you apply for your non-recourse stock loan, you are not required to submit your income, your credit score, or any other qualifying data. The only thing being assessed is your portfolio.
6. Maintain ownership of your portfolio.
You’re probably wondering if borrowing against your stocks means surrendering ownership or title of those stocks. Non-recourse stock loans do not require you to give up either. You will remain the owner of the stock for the duration of the loan term.
7. No restrictions on use of funds.
Whether you’re borrowing money to pay of your mortgage, invest in real estate, buy a business, or pay back debts, borrowing against stocks is a great option. That’s because there is absolutely no restriction on how you use the fast cash you’ll earn from this loan. What’s more, your lender will transfer the money to a bank in your chosen location.
As you can see, non-recourse stock loans are a fantastic option for borrowers in every phase of life, and with any kind of financial goal.