Benefits of a Stock Secured Loan

Over the past decade, the turbulent financial markets and credit markets have had a lot of impact on many different areas of the economy. One area in which they have had a direct impact is in the area of consumer loans. Today, getting a personal loan is harder than ever before.

For those that are looking for a personal loan, it is still possible to get consumer financing through a specialty finance provider. One company that is still willing to provide loans to consumers is Equities First. This company provides a unique type of consumer debt that is secured by a stock investment portfolio. When providing a new loan, Equities First will take out a collateral position on a bar wars stock portfolio. In the event that the loan goes into default, the lender will be able to liquidate the stock to pay off the loan. This level of liquidity allows the lender to provide low interest loans.

The powers of a loan that is secured by a stock portfolio can benefit in more ways than just the low cost financing option. The main benefit is that it allows the bar were to liquidate their stock portfolio without actually selling it. One situation when this is advantageous is when they can help to avoid higher taxes. Depending on how long you been owned the stock, you could end up being charged a very high tax rate by selling at a gain. By taking out a loan, and delaying the sale, you could end up saving a lot of money through reduced taxes.

Those that take out a stock secured loan can also benefit by not having to alter their investment strategy. If you believe that the stock will increase in value in coming years, it would make much more sense to delay the sale. Taking out a loan will allow the borrower to delay the sale.