Non Recourse Stock Loans | Stock Loans | JG Wealth Fund
Non Recourse Stock Loans, JG Wealth and Your Financial Future
The modern economic environment is one that is facing sudden and dramatic shifts at every level, from an individual's employment to the value of stocks used to fund pension and savings funds. In this case, it is not unusual that families and companies alike may face the need for extra funds, to provide funding needed due to unexpected expenses.
However, the danger of many loans is that a failure to repay them, or falling behind on payments, can lead to a negative credit report and thus harm the long term credit worthiness of the borrower. In this case, stock lending can provide an effective method to borrow without risk, via the mechanism of the non recourse stock loan. As a component of JG Wealth's stock finance options, a non recourse loan is a common tool used in securities lending.
The non recourse stock loan, like all stock loans, is based on the collateral of the stock provided by the borrower. This allows the borrower to benefit from the value of their stock, while retaining it once the loan matures and is paid off. Benefiting from low interest rates, ranging from 3 to 5 percent, stock loans of this nature are also interest only loans, and have high loan values of up to 70 percent.
However, the most important component of the non recourse stock loan is the ability to immunize the borrower against unexpected down turns in their financial situation. Liable only for the value of the collateral stock, the borrower is not trapped should the value of the stock suddenly decline below the loan. Equally, should the borrower find it necessary to default on the loan, the default will have no impact on the borrowers credit rating. This alone makes this form of stock finance lending instrument tremendously useful in today's securities lending environment.
Finally, as these stock loans are secured by the collateral stock, there is no need for intrusive and potentially embarrassing income or employment checks. JG Wealth can close the loan in between seven to ten business days, and make the funds quickly available to the borrower.
By working with JG Wealth and their stock finance options, borrowers will enter into a relationship with a skilled and effective partner. JG Wealth understands the needs of their borrowers and works to serve both their long and short term stock lending needs.
