Non-Recourse Stock Loans

Let’s discuss a crucial distinction between the non-recourse loans that we offer and the conventional recourse loans. Both loan types require collateral but with a recourse loan, the lender can come after much more than what you put up as collateral when you fail to repay the loan.

When you borrow for a personal or business-related purchase, such as a private jet or a yacht, your typical recourse loan means that you are fully responsible to repay that loan by whatever means necessary, including not only repossession of the asset(s) you bought with the loan, but any other assets necessary to repay the full loan amount. If your financial situation suddenly changes, this can leave you in a dire predicament, with years spent digging yourself out of the resulting financial hole.

On the other hand, with our non-recourse security-backed loans, you don’t have to worry about a major change in your financial situation or the value of your pledged stocks, because you can walk away from the debt at any time, problem-free.

Why our loans are the right choice:

✅ No credit checks

✅ No requirement to repay, no effect on credit if you terminate the loan early

✅ Walk away from the loan at any time

✅ You never lose ownership of your shares. Keep earning a return while enjoying liquidity

✅ Protect yourself from major capital losses. If the value of your shares suddenly falls, simply walk away from the loan

There are several reasons why you may decide not to pay your debt and choose to relinquish the securities you pledged, but the most common is that the value of those securities has fallen dramatically. For this reason, a stock loan is a responsible way to hedge against your position in a company while still enjoying the returns on your stocks. Often, the returns on your stocks will beat the very low interest rate we charge, making our loans a responsible, efficient way to maintain liquidity in your portfolio.