Securities Loan | Stock Loans | JG Wealth Fund
Securities Loans and JG Wealth
Taking out a securities loan can be a very effective method of financial planning for businesses and individuals alike. JG Wealth has a variety of stock loans that can be used as part of a security lending process to obtain the best possible loan terms. For businesses and individuals, stock lending is a process where funds are borrowed against held stocks, providing an immediate cash infusion.
The borrower benefits from a loan that has extremely low interest rates, ranging from 3% to 5% and one that also enjoys fixed rates of interest. Stock loans of this nature thus allow the borrower to effectively budget for payments, as opposed to loans that have variable interest rates where the cost of the loan can suddenly change dramatically.
Equally, the stock loans found in international securities lending are interest only loans, with the principal due upon the maturation of the loan. However, if desired, the stock lending contract can be extended, thus locking in the same beneficial interest and loan terms. This provides the borrower and lender alike with a great deal of flexibility; making it easy to maintain their relationship should they choose to do so.
A final benefit to the borrower is the nature of the non recourse stock loan, which has no liability beyond the pledged stocks. Should they decline in value beyond an established floor; the borrower can make the decision to default on the loan without any obligation beyond the collateral. Even more importantly, such a decision will not influence the borrower's credit rating via negative reports from the lender.
In addition, the nature of stock finance loans with JG Wealth makes approval a very streamlined process. JG Wealth does not require the borrower to provide documentation of income or employment. In addition, no credit report is demanded, an important factor given that requests for credit reports can damage a borrower's credit rating. Thus, a stock finance loan can be obtained with little work on the part of the borrower, while JG Wealth ensures that the security lending instrument will quickly close, usually within ten days. Combined with the benefits of a non recourse stock loan, this is an extremely attractive arrangement for the borrower.
JG Wealth's role in facilitating international securities lending is of benefit to borrowers and lenders alike, and represents a commitment to effective, customer friendly service on the part of JG Wealth.
