Generally speaking, there are quite a number of benefits that come with the securities loans and for general information, we will mention but some of these in this post. Should it be that you are consideration a stock lending program, it would be advisable for you to consider contacting a stock lending broker or a dealer so as to get better informed not just on the further benefits but as well on the options of the stock lending options that are available out there. One thing that should be well known is that in as much as there are so many of the alternative stock loans options out there, the fact is that there will never be any two that will be substitutes for the other and as such you need to make sure that you are getting one that is most suitable looking at your needs. The following is a look at some of the benefits of the stock loans that need to be known of as a matter of fact.
One is the flexibility of the stock loan proceeds. The interesting fact looking at this is in the fact that the proceeds of the stock loans can actually be used to fund any project it is that you may be having in mind.
Another benefit of the stock loans is in the sense of the speed of their processing and disbursement. In most cases where you happen to go for a stock loan, you will often have these processed and disbursed in a matter of days, at most 7 days.
More on the benefits of the stock loans is in the fact that with them you benefit from loan maximization and this is one other feature with the stock loans that has served to make them such a popular alternative with many investors. This is mainly looking at the fact that with the stock loans you will actually be in a position to apply and qualify for loan values going up to amounts as high as 80% of the value there is in your securities. By and large, this is one feature that makes them stand in a stark contrast to the offers that come with the margin loans whose values are never going beyond 50%.
Added to these is the fact that the stock loans are often non-recourse loans and this as well makes them such a sure alternative worth considering when looking for financial aid for your needs. Talking of them being non-recourse, you see the fact that in the event that the values of your stocks go below the amount of the stock loan, then you have the alternative of relinquishing your stocks and keeping the proceeds of the loan with you.
Stock loans as well happen to be quite a sure deal when you are looking forward to make and have in place some remedial steps towards being as ready for the eventualities of the fluctuations in prices of the stocks.