Liquidity issues and a tightening credit market have conspired against individuals in need of loans. Fortunately, for those who own securities, Florida Mortgage Corporation is ready to help with their new securities based lending practice.
Online PR News – 01-November-2010 – – The Florida Mortgage Corporation is coming to the aid of clients who have are having difficulty securing loans. With its securities based lending, Florida Mortgage Corporation is able to offer non-recourse loans to clients at low, fixed rates. When liquidity issues arise, people sometimes rely on credit to get by, going to banks for loans and also employing credit cards for their daily expenses. The average American is on the hook to the tune of eleven thousand dollars in credit card debt alone, other loans and mortgages notwithstanding.
When the cash flow is tight, sometimes getting a loan is a necessary step, because failing to live up to one's financial responsibilities can mean even penalties and even bigger bills the next time around. Not having the money to pay for daily needs will take its toll after unpaid bills pile up and start earning interest. Unfortunately, getting a loan may not be easy for some folks. People get loans because they lack funds and assets; this becomes a problem because collateral is necessary before a loan is granted. Others don’t have a good credit profile, which makes borrowing money almost impossible.
Luckily, for those who own stocks, they can use them as collateral for borrowing money. This is called a stock loan or securities-based lending. It is similar to a mortgage loan in several ways, such that in a mortgage loan, your house becomes your collateral for borrowing money. Using your stock portfolio as collateral has a lot of benefits. It is arguably a faster way of obtaining a loan as you can immediately use your stock to successfully get hold of a loan. Because a stock loan is asset-based, the loan can be approved and given fairly quickly.
The entire process of acquiring stock loans, from the start of application until the time the loan gets approved, usually takes just a few days. If a person needs money urgently, a stock loan is then a prudent way to acquire money. Another benefit of obtaining a stock loan is that it is a non-recourse loan. Simply put, if you find yourself incapable of paying back a stock loan, you will lose the stock you gave as collateral – and nothing more. The proceeds of that stock will still be yours. This keeps a borrower’s risk to a minimum, in contrast to other kinds of loans.
Different types of stocks are entertained in a stock loan. Certain criteria have to be met for a specific stock to be eligible as collateral for a stock loan, but the criteria are not that difficult to fulfill. Securities lending and securities-based lending are not to be confused as the same thing, although some people tend to use them interchangeably. Securities lending involves the lending of securities by brokerages and banks. Securities-based lending, on the other hand, involves a loan that uses securities, such as stocks, as collateral.
"Our Stock Loan program accepts all forms of free-trading securities, such as stocks, bonds, mutual funds, stock options, whether it is traded in the US or Foreign Stock exchanges. We are able to extend non-recourse loans to our clients at incredibly low fixed rates, and a credit report is not necessary," notes the management of stocksloan.net.
Florida Mortgage Corporation has executed successful securities-based lending transactions involving the American Stock Exchange, NASDAQ National Stock Market, NASDAQ Small Cap Stock Market, New York Stock Exchange, Over-the-Counter Bulletin Board and several foreign exchanges. Florida Mortgage Corporation is a Licensed Mortgage Lender established in 1989. We enjoy an excellent reputation in Financial Services and have been serving our clients for over Twenty one years.