If you go to Google and type in "STOCK LOAN" there are over 16mm websites. Stock loans and the procedures that come with them should be easy and legal…Right?
But as you may have seen they are not...
A stock loan fee should not be over charged by anyone. In a stock loan market in this day and age…a stock loan lender has to keep up on other stock loan companies to stay competitive.
SBLC Financing and its managing Partners have direct access to a stock loan desk that offers low stock loan rates. This will allow you to hedge and borrow against your stock and in some cases even if they are restricted stock.
We have made loans against stocks easy…
"Stock Loans Are Back!"
Bowz Management Corporation and SBLC Financing
Offer…“Domestic & International Financial Services”
RE: Stock Loans
Here is some information on the stock loan program:
While it's true that a margin loan might be the right cash liquidity choice for many stock owners, a standard brokerage margin loan will not meet the needs of everyone. For these stock owners, a STOCK LOAN can serve as a feature-rich alternative to traditional margin-based lending.
Margin Loan (what most broker/dealers offer):
50% loan-to-value Margin/house calls require borrower to cover shortfalls with additional cash or stocks; recourse loan; Lender can demand not only stocks, but additional assets in the event of unpaid shortfall or nonpayment.
Default is freely reportable to credit bureaus, especially if the loan is not repaid. Client cash tied usually to one brokerage account unless sold. Cash available by selling stocks outright from account, Regular account statements. Must apply to qualify for margin account; often minimum balance.
Stock Loan (what we have):
Up to 90% loan-to-value; no margin calls for any reason. 100% hedged portfolio limits risk of loss; margin calls unnecessary; nonrecourse loan.
Client can freely default at any time, forfeiting only stocks, even if stocks are worthless. Client keeps cash. Nonrecourse freedom means default never reported to credit agencies. Default is a borrower right.
Loan cash available for any legal purpose, not tied to account, cash loan means no sale of stock. Tax deferral is possible with regular account statements. No qualifying required. Your stocks are your passport to a STOCK LOAN.
Qualifications of a Stock Loan:
- Min 250k up to 2 Billion Loan Amount
- Stock must be publicly traded
- Interest rate from 4.00%-7.5% fixed
- Use low, fixed rates to refinance other loans such as real-estate.
- LTV up to 90%
- Retire margin debt and get more cash with advance rate of up to 90% against your stock, instead of 50% offered in margin accounts.
- Select Terms from 1 yr. +
- Non-recourse, non-callable
- No margin calls, no house calls.
If your stock depreciates you have the choice to default without attachment of other assets or effect to your credit rating. Small interest payments until maturity. Balance due at maturity, if Loan is being paid off.
Your cash can be free to service other debt or any other cash flow requirements. The only restriction is you can not purchase the same stock you borrowed against.
Please note that these criteria apply to stocks trading on any exchange in the World.
This is not to be construed as tax planning, investment, buy-sell, or legal advice. Bowz Management Corporation and SBLC Financing are not in no way a securities company or broker/dealer. We are acting in an agent capacity by way of referral and do not offer or sell these types of programs.
Reasons To Provide This For Your Clients
Or To Get Stock Loan For Yourself:
1. Use the money as a down payment on real estate
2. Use the cash to resolve tax issues
3. Buy an annuity
4. Use the money to buy insurance
5. Buy a business
6. Pay off debt
7. Use proceeds for anything except purchase of same securities.
If a stock loan program is what you are looking for we will need you to download this file and email or fax it back to us:
Stock Loan Request Form, Disclosure & Agreement (Zip File)
(download zip file)