Stock Loan | JG Wealth Fund
Stock Loans and Effective Financial Planning
Stock lending has become an increasingly attractive method of financial assistance over the last several years, especially with the ability to make use of non recourse stock loan instruments. This new trend in securities lending is one that the wise borrower should seriously consider.
JG Wealth's stock lending program can allow borrowers to make effective use of their stocks to provide a short term infusion of cash to assist the borrower in meeting unexpected expenses. A JG Wealth securities lending instrument has the following advantages for the borrower:
- By permitting the borrower to secure short term financing, stock loans can be used to effectively "even out" income short falls due to other financial factors.
- Stock finance instruments are marked by very low interest rates, ranging from 3 to 5 percent. In addition, these rates are fixed, which allows the borrower to effectively forecast the total cost of the stock finance loan.
- Stock finance loans of this type can be closed very quickly. JG Wealth generally closes such a loan within seven to ten days.
- JG Wealth does not demand a credit check or employment verification for securities lending instruments of this type. A minimum of paperwork is demanded from the borrower, making the loan process much easier.
Finally, a non recourse stock loan has a very powerful benefit for the borrower. Unlike many other loans, the borrower is not liable should the value of the stock drop below the original loan. In that case, the borrower can make the decision to default on the loan with no further liability.
In addition, the borrower's credit rating will not be negatively impacted by such a decision, allowing the borrower maximum flexibility in deciding what action will best benefit his or her financial needs. Thus, stock loans of this type are far less binding than loans that have been secured on other forms of property or that have penalties attached to them.
When working with JG Wealth to take out stock loans, a borrower can be assured that JG Wealth will work to ensure the best possible financial outcome. With a large and experienced staff of stock lending specialists, JG Wealth can effectively determine the solution that is best suited to their particular needs.
