Stock Non Recourse Lenders | Stock Loans | JG Wealth Fund
Stock Non Recourse Lenders as a Source of Financial Security
When considering taking out a loan secured by stock, the borrower should also determine what terms a lender might desire. In this case, finding a stock non recourse lender can be an excellent method of obtaining a useful, yet reasonable loan.
The Benefits of a Non Recourse Stock Loan
A non recourse stock loan is a loan where the lender has no recourse beyond the collateral that has already been used to secure the loan, in this case the stocks that back the loan. Non recourse lenders therefore accept the fact that should the stock decline in value the collateral may fall below the value of the loan. As a tool in securities lending, a non recourse loan permits greater flexibility on the part of both the lender and the borrower.
The borrower gains the ability to "walk away" from a loan should financial events lead to the stock declining in value below the size of the loan itself. Non recourse lenders accept the risk that the stocks might fall in value. However, they equally are not burdened by attempting to manage and value real property, such as real estate.
In addition, borrowers benefit from low interest rates and short term loans that can be easily be extended. This allows them to react to changing circumstances in their own financial situation, rather than being locked into a long term loan. Finally, if it becomes necessary to default on the stock loans, the borrower's credit rating will not be damaged.
Stock lending with non recourse loans
A borrower who engages in taking out a securities lending instrument like a non recourse loan will find the process far more streamlined than many other forms of loans. JG Wealth does not demand documentation of income, or proof of employment. The collateral of the stock is all that is needed for a qualified borrower. Using the stock finance instruments to serve as collateral for the loan, an expedited process can see the loan being closed within seven to ten days. Stock lending of this nature thus provides an effective means of obtaining reasonable terms for stock loans.
JG Wealth understands the various factors that go into planning to take out a non recourse loan and works to assist their clients effectively close such stock finance processes. JG Wealth thus works to assist both the long and short term finances of their clients.
