The Advantages Of Stock-Based Loan
We have many categories of loans with merits and demerits. People take up loans because of many reasons either to accomplish a certain purpose or to consolidate debts. We have many types, but here we are going to know more about the stock based loans and their benefits to borrowers. We have quite a number of advantages that accrue with this kind of loans. One of the best things about these loans is that they have helped quite a number of people who do not qualify for the conventional credit based loans, but they have to raise money quickly. There is another thing that is so good about the stock based loans, unlike banks which have increased rates and the right qualifications, you can secure these loans very easy and fast without too much hassle. Here are some of the notable benefits you get when you borrow the stock based loans.
With stock based loans you get higher loans to value ratio. This indicates that one can raise more money from the stock loan he or she has secured. Borrowers enjoy fixed interest rates on the loan which provides certainty throughout the life of the loan. It is very well such that you are aware of what to pay to avoid any future problems.
They have a special feature , the non recourse. You can get away no matter the current value of the stocks. Unlike with other loans where you are required to pre-qualify and request money for specific purposes. Unlike in other cases where you cannot walk away from the loan or where you need the qualifications and the purpose for you to obtain any loan, the stock based loans do not require you to consider all that criteria.
There is so much freedom with these loans, there is no need for you to tell your lender what you intend to do the loan for, that’s is left with you to decide. They are also flexible. The stock loans proceeds may be used for almost any purpose. You do not need to have a specific purpose for securing the loan, what you intend to do with the loan does not matter.
Loan maximization is another merit of the stock based loans. It may be possible to obtain eighty percent of your sticks value in the form of a securities loan. Other loans you cannot get loans passed 50 %, but with stock based loans you get over 80% of your stocks value. The above are some of the benefits that come with stock based loans. The stock loans have so many benefits unlike others that you can’t because if the overwhelming things you have to do, get loans, walk away from them and enjoy the total freedom of using it. Stock loans have such advantages as discussed above.