Stock Loans


Stock secured financing and equity lending is a relatively new concept in the global marketplace. For a number of years, stock loans and equity loans were only available to high net worth clients with accounts at large international institutions. HFS is one of the first consulting firm to introduce the stock loan product to a wider range of customers in an effort to broaden exposure to this alternative financial solution.

A stock loan is a simple and effective transaction designed to provide the borrower with liquidity while retaining access to potential asset appreciation. There are different variations of the stock loan vehicle across the globe, but the underlying model is primarily the same: A stock loan provides the most efficient and practical solution to the stock owner’s dilemma. A stock loan participant is able to access a majority of the current value of his underlying securities position while simultaneously retaining access to the securities and the potential for future growth.

two-stk-certs-finalBoth United States and international stock loans are available. This allows for the maximum flexibility on the part of the lender and borrower alike. This is extremely useful for those who own stock in foreign companies as well as citizens of other nations. This capability is especially helpful, as loans against securities can be an important tool to deal with sudden downturns in the local economy.

Finally, stock loans enjoy extremely low interest rates of 3 to 5 percent. Furthermore, these are fixed rates, and so allow the borrower to effectively plan ahead. These stock lending instruments are interest only until the loan maturation date, which can be extended if it proves wise to do so.

CONTACT an HFS representative for more information about this creative financing tool.