Over the past 10 years, the turbulent economy has impacted many different areas of consumer economics. One area in particular that has been impacted has been the area of consumer loans. In many cases, getting a personal loan can be next to impossible. While traditional personal loans are hard to come by for many consumers, there are alternative types of loans provided by specialty finance firms that can be accessed at reasonable costs.
For those that are looking for a personal loan, one option that should be considered is taking out a stock secured loan. When providing a stock secured loan, a lender will be able to take a secured lien on the stock portfolio. This provides the lender with a very liquid asset, which can be sold in the event that the loan does not perform. Since the lender has such a strong collateral position, the lender is able to provide a loan with a low-interest-rate and fee structure.
While giving a stock secured loan is a conservative option for a lender, there are also advantages for a borrower. One key advantage is that it provides the borrower with the ability to liquidate their stock portfolio without actually selling it. If a borrower believes that the loan interest rate is lower than the future appreciation and dividend rate received from owning the stock, it would be financially accretive to take out a loan as opposed to selling the stock.
Borrowers of stock secured loans are also able to receive tax benefits associated with delaying the sale of stock. In certain countries, selling a stock early will result in a higher capital gains tax rate. In most situations, it would make far more sense to wait for a while to sell the stock. In many situations, the reduced tax rate paid will more than offset the higher interest charges that a power will have to pay.
When you are looking for a stock secured loan, one great option is to go with Equities First. Equities First has been providing these types of loans for over a decade. To date, they have funded over $1 billion in loans to individual consumers and small businesses. The company has the ability to provide financing two hours in countries all over the world including the United States, Europe, Asia, and Africa. The company is well aware of each nation’s laws and can structure and active loan accordingly.
Visit https://www.easyequities.co.za for more.