During the current economic climate getting access to personal capital can be a challenge for many people. This is particularly the case for people that are looking for a short-term unsecured loan that comes with an affordable interest rate. While getting access to a personal loan can be difficult, those that have a stock portfolio can still find that it is possible to get a personal loan when giving the portfolio as collateral.
The main reason that it is easier to get a personal loan when using a stock portfolio as collateral is because that it gives a bank an instant form of liquid assets. This means that in the event you are not able to pay back the loan, they will have access to the account and will have the ability to liquidate the stock as necessary. Since they have a very liquid asset as collateral, banks often fight for stock secured loans that can then result in lower interest rates and fees to the consumers.
While it is a good type of loan for a bank to pursue, it is also ideal for the consumer. Those that have a stock portfolio and do not want to sell stock for investment strategy or tax planning purposes will still be able to take advantage of that capital. This can be a huge advantage when it comes to the ultimate return on investment of your portfolio. Furthermore, the cost of the loan tends to be very low compared to other types of loan products, as it is one of the most secure types of financing available.
When looking for a stock secured loan, a great place to start would be with an experienced provider, such as Equities First. For the past decade Equities First has been a leading provider of stock secured loans. The company has completed over $1 billion worth of loans for individuals, institutional investors, and small businesses. They are also well known for completing the underwriting and approval process quickly, which helps to ensure that you are able to access the capital that you need as quickly as possible.