If you’re thinking about investing in stocks and don’t currently have the necessary funding to do so, then you might want to consider getting non-recourse stock loans to help you get started.
Non-recourse stock loans are options many investors in the world of stocks use to get ahead in their investments. It’s great for increasing your portfolio of stocks without actually needing to put your possessions on the line. Stock loans can help increase the number of stocks you invest in and keep you safe from losses by diversifying the number of different stocks invested in.
Understanding Stock Loans
In concept, stock loans aren’t too different from your average loans. You essentially are doing the same thing as you would with any loan; you receive money as a loan against a certain amount of collateral. The only major difference is that the collateral is backed by stocks you own rather than by material possessions, like a car or a house.
You can receive loans valued between 1 million dollars to 500 million dollars by using stocks as collateral to further invest in the market. You don’t necessarily need to own the stocks beforehand either, as you can get the help of a broker or lending agent to help you acquire the stock before proceeding to use it as collateral.
Why Choose Stock Loans
It isn’t always a viable strategy to use your house or a car as collateral against a loan. You might not want to use your assets against a loan, you may be in a situation where your assets aren’t providing a big enough loan, or your aim may be to buy a house or a car through a stock loan. Whatever your situation, stock loans provide an easy way to avoid having to use your possessions as a way to get a loan.
Another benefit is that stock loans usually come with lower interest rates than other loans and are easier to pay back. You may also use them to diversify your investments further, as stock loans are usually high value and can easily be broken down for different investments. An example of this may be receiving 1 million dollars in stock loans and investing in different companies to reduce the investment risk.
Receiving Stock Loans
As stated above, stock loans come at lower interest rates than standard loans for business or personal use. However, most people don’t have the necessary funds or stock investments for that sort of loan. Working with a private lender can help you receive money without using anything but the stocks you invested in as collateral.
This is where K Horton Financial steps in to help you out. If you’re trying to diversify your stock options further, get in touch with us to discuss potential high net worth loans. We are a stock loan provider with over 35 years of experience in the financial sector. Get in touch with us to learn more about our non-recourse loans.
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