Stock Loans

With the current turbulence in the world share markets and drastic reduction in share values an alternative to selling your shares is obtaining a stock loan. Direct Loans allows you to use your publicly traded stock as collateral for a low interest, non-recourse loan.

You can extract value from your shares today without selling. You keep the future capital appreciation, minimise taxes, and where applicable, avoid margin calls if the stock goes down during the term of the loan.

Here are some key points regarding the benefits in obtaining a non-recourse stock loan.

• Low fixed interest rates for the term of the loan.
• Quarterly interest only payments, in arrears.
• Term of loans: up to 10 years.
• Loan to value between 35% and 80% depending on the collateral (liquid, actively traded usually between 65% and 80%)
• Borrower retains beneficial ownership; receives upside market appreciation and credit for dividends against future interest payments.
• Can borrow additional appreciation in stock’s value during the term of the loan.
• Non-recourse loan; borrower has downside protection. Can walk away without penalty at any time, simply surrender ownership in the stock.
• Most any publicly traded stock on major world exchanges with daily trading activity.
• Treasury bonds and Mutual funds.
• Minimum of $100k loan and no maximum loan amount.
• Fast turn around time, funding usually completed within 10-14 days from enquiry submission.