OTC Stock Loans
Creating liquidity for your business
Over the Counter Stock Loans
Taking out a stock loan is a smart landing pad for those in financial need or looking to leverage their current assets to create additional cash flow. There are many ways to go about filing for one. We’re here to assist you every step of the way.
At Easy Stock Loans, we offer non-recourse stock loans. We offer loans for stocks that trade on various stock exchanges for the benefit of our customers. This is true for OTC stock loans, a market in which trading can happen between the engaging participants (wherein OTC means over-the-counter). This includes the OTCQX, OTCQB, and Pink Sheet markets.
Offering loans for junior exchanges, like the Pink Sheet Markets, makes us a valuable resource for seasoned investors that own non-marginable securities. Considering that most banks don’t offer loans of these kind for micro-cap stocks.
Uses of Over The Counter Stock Loans
Stock loans enable investors to maintain the upside of their portfolio while accessing liquidity in other investments. For instance, a stock loan would allow someone to keep their stock while participating in a real estate venture – the stock loan means they do not have to sell off investments in order to make new ones.
This is quite different from taking out a bank loan. However, there are some similarities: in both methods the lender needs some way to ensure the money that they’re owed is returned. That’s where “collateral” comes in. These are assets that individuals or companies own that they give to the bank while they’re paying a traditional loan off. This is so if the loan is not paid, the bank takes the assets. Collateral is a placeholder for the debt until the owed money comes in. In the case of stock loans, the collateral assets exchanged are stocks that are already invested by the individual and/or company. It is a road less taken, but it is often more lucrative.
What Are the Benefits of an OTC Loan?
Stock loans makes the process of borrowing money easier. Your financial situation can end up better for it. After all, such a venture results in a higher volume of market activity. It’s possible that you can make money off your loan due to appreciation (as well as the fiscal security that comes with that). It also functions as an interest-only option.
Stocks are definite assets as they pertain to people’s monetary backings and dependable investments. This makes them viable contenders for bank collection in the first place. However, more than any other asset, stocks typically fluctuate to an extent that protects the holder by ensuring financial coverage once the loan is paid back.
Also, should there be a circumstance in which the loan is not paid back on time, the bank would confiscate only the stock as opposed to something tangible and largely imperative to one’s livelihood, such as a house, a car, or other non-marginable investments.
There is also the wonderful option of stock loans for insiders – those who are directors, affiliates or officers of a publicly traded company – under SEC Rule 144. Anyone considered a “control person” within such a company will be working under SEC Rule 144, whereby Easy Stock Loans can offer a 144 stock loan in the amount of 1% of total issued and outstanding shares, every 90 days.
Where Should I Start?
The loans we offer are interest-based in relation to the current prime rate and operate in three to five-year-long processes.
Contact one of our loan advisors for more details, so you can decide whether you qualify for stock loans and if they are right for you.