Am I a Good Candidate for Taking Out a Stock Loan?
September 21, 2021
Stock loans are the go-to option for many high net worth individuals, but it doesn’t restrict them to only those looking to acquire large properties or assets quickly. Many people can benefit from them, and if you’re wondering if you’re a fit candidate, here’s how you can determine:
You Have Shares
The first sign that you’re an excellent candidate for taking out a stock loan is that you already have shares among well-valued stock. Either you expect their prices to go up in the future or wish to avoid any major capital gains taxes, you’d want to consider getting a stock loan for your money. This way, you’re able to get a good sum for the money without having to lose out on any value of the stocks that you hope to balloon in the future.
Another advantage is the fact that you still retain the dividend income that you get from the stock with the help of stock loans. This alone might make the entire process appealing to people.
Whenever a considerable number of shares are sold at once, it can give off an unsavory impression that the company might not be doing so well or that the share prices may fall. Observing one person sell off a large number of stocks can alert other sellers and push them to sell off their shares in a panic. If you’re interested in a long-term investment or forming a partnership with a profitable business, it’s not feasible to sell off stocks this way.
Getting a stock loan is an excellent way to ensure that the stock prices don’t crash because of you, and you end up getting your shares back once the loan has been paid off.
If you have a credit blemish/ding, you’re more than likely to get a bad deal from a conventional bank loan. Bad credit history makes it seem less likely that you’re going to be able to fulfill the terms and conditions that the lender normally provides. In such cases, they will certainly offer you the loan but the rate of interest is generally higher so they can ensure that they’re able to recover their amount.
In such cases, it’s a no-brainer to opt for a stock loan.
Minimize Effect on Credit Sheet
Maybe you already have a good credit sheet, but you don’t want to cause any undue effects to it but require a significant loan. People with different investment plans at once might benefit heavily from acquiring a stock loan for the capital they need.
If you’re looking for high net worth non-recourse loans, you can reach out to K. Horton Financials. We work with different authorities across New Zealand, Australia, South Africa, Japan, Malaysia, Thailand, Indonesia, and more to help people across the world acquire personal loans for yacht, private jet financing, and other high net worth loans. We emphasize building strong working relationships with our clients through quality service.