• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • How Stock Loans Work
    • Get an Estimate
    • Non-Recourse Stock Loans
    • Supported Exchanges
    • Supported Markets
  • Reviews
  • About
  • Contact
  • Blog
Stock Loan Solutions

Securities-backed Lending and Stock Loan Info

What Fees Can You Expect For Stock Loans?

January 3, 2024 by Lily Roberts Leave a Comment

Stock Loan Fees

Stock loans are an underused form of raising business capital. The capital is raised by exchanging non-marginal stocks for a non-recourse loan. This creates a great opportunity for businesses shuddered by banks and institutions.

Do you hold non-marginal stocks and need an injection of capital? Want to understand how the process works and the fees you can expect?

You’ll include this form of fundraising on your list of potentials by the end of this article. Let’s check it out.

Stock Loans: How It Works

A stock loan falls under the securities lending umbrella.

Traditionally, stocks are lent to a borrower for a small fee. The investor uses stocks to position trades for income earning activities like shorting. The stocks exchanged with the investor are publicly traded or securities.

Stock loans follow this parallel with one major difference: a business provides a loan for stocks that do not qualify for a margin loan.

Here’s how it differs:

  • The stock acts as the loan collateral
  • The loan forgoes a credit check and reporting
  • The exchange is kept private and confidential

A business using this fundraising receives a loan based on a loan to value ration. This accounts the non-marginal stock and securities market value and performance.

Stock Loan Fees

Securities lending follow similar fee structures. A traditional agreement will use interest and tenure to reach an agreement. The borrower pays a fee for use of the stocks. Borrowers also pay equal amounts earned by dividends.

The stock loans offered through Stock Loan Solutions take a different approach.

Our process and fees are as follows:

  1. Our in-house team of underwriters determines the LTV of your holdings
  2. We present a quote ranging from $50k-$5mil
  3. You decide to meet an agreement
  4. A repayment schedule of 24, 36, or 60 months are chosen
  5. You pay interest payments quarterly until the loan is repaid
  6. Stocks transfer back to you upon repayment

This process does not have up-front fees and typically closed and funded within 48 hours. Our stock loans fees are determined by the current prime rate.

Interest is paid alongside the principle and compounds monthly.

Variable Factors for Fees

Our fee, using the current prime rate, makes stock loan an elegant solution for fundraising. Though, every client can expect different fee structures based on several factors.

These factors include:

  • Business size
  • Liquidity of stock
  • Sales volume

Once the loan agreement is established the repayment fees and rates do not change. Those unable to repay their stock loan in the determined time may choose to rework the loan terms. Or, offer their stock as repayment as they were first established as collateral.

Let Stock Loan Solutions Provide Your Capital Injection

An owner may choose to sell stock to provide the capital to stay afloat. However, this process may take weeks to complete — a chunk of time one cannot afford.

Stock loans provide a quick way to inject capital into your business. The loan never reports publicly to avoid investor uneasiness. The respectable terms and access to capital make this a prime opportunity.

Would you like to know more? Or, feel you’re ready? Pick up the phone (1-866-446-1009) and contact us, today, to learn your options.

Filed Under: Articles Tagged With: stock loans

Lily Roberts

About Lily Roberts

Lily Roberts is a seasoned financial writer with a strong academic background in history, having graduated from Hamilton College in 2015. Her unique blend of analytical skills from her history major and her deep understanding of financial concepts has allowed her to craft insightful and engaging content in the financial industry. Prior to her writing career, Lily gained valuable experience working as an intern at a reputable investment firm, where she honed her expertise in market analysis and financial communication. Her commitment to delivering accurate, informative, and accessible content continues to resonate with audiences seeking trustworthy financial education and information.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get Our Most Recent Updates

More to See

aerial photography of rural

Comparing Asset-Based and Traditional Lending Options

December 6, 2024 By Lily Roberts

laptop computer on glass-top table

How to Borrow Against Your Stock Portfolio Easily

November 20, 2024 By Lily Roberts

fireworks display at night

Why a Stock Loan Works for Managing End of Year Expenses

November 18, 2024 By Lily Roberts

a close up of a clock with green numbers

Using a Securities-Based Loan to Finance a New Business Venture

November 13, 2024 By Lily Roberts

Stock Portfolio

Benefits of Borrowing Against a Stock Portfolio Instead of Selling

November 11, 2024 By Lily Roberts

Tags

asset-based lending financial markets financing insurance investing non-recourse loans retirement securities lending stock lending stock loans taxes trading

Older Articles

  • December 2024
  • November 2024
  • June 2024
  • May 2024
  • April 2024
  • January 2024

Contact

6582 S Big Cottonwood Canyon Rd, Ste 200
Salt Lake City, UT 84121

[email protected]

+1 866-446-1009

Footer

  • HOME
  • HOW STOCK LOANS WORK
  • OUR LIQUIDITY PROGRAMS
  • STOCK LOAN CALCULATOR
  • REVIEWS
  • ABOUT
  • CONTACT
  • BLOG

Recent

  • Understanding Non-Bank Lending: A Guide
  • Comparing Asset-Based and Traditional Lending Options
  • How to Borrow Against Your Stock Portfolio Easily
  • Why a Stock Loan Works for Managing End of Year Expenses
  • Using a Securities-Based Loan to Finance a New Business Venture

Search

Tags

asset-based lending financial markets financing insurance investing non-recourse loans retirement securities lending stock lending stock loans taxes trading

The information contained herein is presented solely for the purposes of discussion and under no circumstances should this be considered an offer to buy or a solicitation of an offer to sell any security. Stock Loan Solutions is not a registered securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. Stock Loan Solutions, its managers or affiliates have not been registered and do not plan to be registered under the Investment Advisers Act of 1940 or any similar state or foreign securities laws. Stock Loan Solutions is not registered under the Investment Company Act of 1940 or under any similar state or international securities laws. Stock Loan Solutions does not offer any form of investment (buy or sell) advice, tax counseling, estate planning, or any other securities or financial advice whatsoever. No statements on this website or any verbal or written statement by any representative shall be construed as such advice. We are neither licensed nor qualified to provide investment advice.
We take protecting your data and privacy very seriously. Do not sell my personal information.
Copyright © 2025 Stock Loan Solutions