Stock Lending | Stock Loans | JG Wealth Fund
Stock Lending with JG Wealth
With the current difficulty in obtaining conventional loans, the practice of stock lending has become a growing and extremely effective source of short-term revenue for borrowers alike. International security lending is in fact a growing sector of the securities lending markets, and one that shows no signs of slowing in the near future.
The benefits to the lender making stock loans are quite obvious. Stock finance instruments are considerably more convenient than handling loans based on land or other concrete collateral, especially should the borrower be forced to enter into default. This is especially true in the case of loans extending across national borders, which is why international security lending can be such an effective method of lending.
Equally, the borrower can make effective use of securities lending, especially for short-term financing. Stock finance loans make use of the borrowers stocks, and can return a large amount of immediate financial assistance. This benefits the borrower, especially in today's market where unexpected opportunities or costs may suddenly arise.
Stock loans generally have very low interest rates, and the principal is due upon the maturation of the loan, although it is possible to extend the loan beyond the original maturation date, providing more flexibility to both the borrower and lender.
But perhaps the best aspect of the securities lending can be found in the advantages conferred by a non recourse stock loan, which allows the borrower to have a tremendous amount of flexibility in how they handle their loan. Should the value of the stock drop below that of the loan, the borrower may chose to simply default on their loan. In this case, the default on the non recourse stock loan will not expose the borrower to any more liability. Equally importantly, it will not damage the borrower's credit rating, a vital consideration in the present economic environment.
Finally, due to the nature of such loan instruments, gaining approval is an easy and streamlined process. JG Wealth promises most loans will be closed in seven to ten days. Furthermore, documentation of income or employment is not required, sparing borrowers potentially embarrassing questions. JG Wealth seeks to ensure that the borrower is entering into a rewarding financial relationship with their lenders, and desires to be a long-term partner with the borrower during this process.
