Contemporary stock loan products offer the borrower – investor many unique benefits.  While not all stock loans are the same, most of the following are benefits the client will enjoy....

Completely Private Transaction:   The loan is not usually required to be disclosed to the SEC or other shareholders.

Gain Immediate Liquidity:  Most stock loan transactions are funded within 72 hours of final approval.

Fully SEC, FRB and UCC Compliant:  Any and all disclosures are provided in advance or not required at all.

Maintain Dividends and Voting Interest:  With restricted stocks, you retain complete ownership of your shares will still receive dividends and can vote your shares as always.

Limited Liability:  In most cases, if the stock price falls, the loan is either fully or partially non-recourse.  This means no need to repay the difference with no impact to personal credit.

Avoid or Defer Taxable Events:  Because the loan does not constitute a sale or transfer, the client may use the funds now without immediate tax consequences.

No Personal Guarantees.  The stock is used as collateral and nothing else.

No Credit Checks:  Unlike consumer loans or bank, broker or margin loans, the stock value, volume and type of security is the primary focus of the loan.

No Margin Calls or Margin Maintenance:  Most stock loans do not require margin account maintenance.

Higher Loan to Value – Low Interest Rates:  Loan to values range between 30% to as high as 90% depending on the stock.  Interest rates are calculated simple as low as 3.99% and are seldom greater than prime +3%.*

Hedge Against Loss:  With most stock loans, in the event of a market decline, the client may chose to surrender their stock and simply walk away.

Use Of Funds:  Funds may be used for any legally allowable purpose.

Stock loans just make good business sense.  For more information on how a stock loan can benefit you, contact your EZStockloan.com representative today.

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