While the global recession appears to be behind us, many traditional lenders are still forced to act conservatively when it comes to lending money. This is particularly true when it comes to providing personal loans to individuals or small businesses. In fact, getting a personal loan if you do not have perfect credit or a sizable income can be almost impossible. However, if you have a stock or other equity portfolio, you could still get financing from an alternative financing provider, such as Equities First.
Equities First is a global provider of personal loans that are secured by stocks, bonds, or other liquid securities. The company has been providing these types of loans for over 10 years and has become an international leader in terms of volume when it comes to providing stop secured loan to consumers and small businesses. The company is well known for providing loans with affordable rate and fee structures, for being very patient, and for being very customer friendly.
There are several situations when a borrower would benefit from taking out a stock secured loan. One situation would be when selling stock would create a tax or an estate tax liability. Depending on where you live and how long do you own the stock, you could suffer a significant financial tax liability if you sell. In many cases, it could be far more beneficial to wait a few years to sell and instead take out a loan that is secured by your stock portfolio.
Another situation when it would make sense to take out a stocks secured loan would be if you have an investment strategy that prefers that you hold the stock for a longer period of time. If you have stock in a company that is poised for growth it would make sense to continue to hold the stock it instead liquidate your equity by taking out a loan. In many cases, it would be financially beneficial to take out a loan as opposed to selling the stock.