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Low
Liquidity?
WORLD 2023
FINANCIAL PRIORITIES
stock
loans
1
stock
loans
What Is
Liquidity?
Liquidity refers to the efficiency
or ease with which an asset or
security can be converted into
ready cash without affecting
its market price.
The most liquid asset of all is
cash itself. The more liquid an
asset is, the easier and more
efficient it is to turn it back into
cash.
Less liquid assets take more
time and may have a higher
Investopedia / Tara Anand
2
2
Stock Loans
stock
loans
The Best Alternative
3
3
Stock Loans What Are Stock
Loans?
Loan stock refers to shares of
common or preferred stock that are
used as collateral to secure a loan
from another party.
Common stock is a security that represents
ownership in a corporation. Holders of common
stock elect the board of directors and vote on
corporate policies. This form of equity ownership
typically yields higher rates of return long
term. Common stock is reported in the
stockholder's equity section of a company's
balance sheet.
Preferred stock is a class of stock that is granted
superior rights to common stock, like higher
dividend payments and a higher claim to assets in
the event of liquidation.
The loan earns a fixed interest rate,
Investopedia / James Chen / Jiaqi Zhou
stock
loans
4
stock
loans
Stock loans can be a useful tool for businesses looking to maintain liquidity
and operational capacity. Here are some potential benefits of using stock
loans:
Stock
Loans
5
StockLoans
stock
loans
Access to cash
6
StockLoans
stock
loans
Access to Cash
Stock loans allow businesses
to borrow against their stocks
without having to sell them.
This can be especially useful for
businesses that need cash but
don't want to sell their stocks
due to potential tax implications
or because they believe the
stocks will increase in value in
the future.
stock
loans
PRP- Premium Referral Partner
7
StockLoans
stock
loans
Flexibility
8
StockLoans
stock
loans
Flexibility
Stock loans can be customized
to meet the needs of individual
businesses.
Loan terms can be tailored to fit
the specific needs of the
business, including the amount
of cash needed, the length of
the loan, and the interest rate.
stock
loans
PRP- Premium Referral Partner
9
StockLoans
stock
loans
No credit check
10
stock
loans
StockLoans
No credit check
Because stock loans are
secured by the stocks
themselves, lenders don't
typically require a credit check.
This can be an advantage for
businesses that may have a
less-than-perfect credit history.
PRP- Premium Referral Partner
11
StockLoans
stock
loans
No personal
12
StockLoans
stock
loans
No personal
guarantee
Stock loans are typically non-
recourse, meaning that the
borrower is not personally liable
for the loan.
If the borrower defaults on the
loan, the lender can only seize
the stocks used as collateral;
they cannot go after the
borrower's personal assets.
stock
loans
PRP- Premium Referral Partner
13
StockLoans
stock
loans
Retain ownership
14
StockLoans
stock
loans
Retain
ownership
With a stock loan, the borrower
retains ownership of the stocks
used as collateral.
This can be an advantage for
businesses that want to
maintain control over their
stocks while still accessing the
cash they need.
stock
loans
PRP- Premium Referral Partner
15
StockLoans
It's important to note that there are also potential risks and drawbacks to
using stock loans, including the possibility of losing the collateral stocks if
the loan is not repaid. Businesses should carefully consider their options and
consult with financial professionals before taking out any type of loan.
stock
loans
16

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STOCK LOANS

  • 2. stock loans What Is Liquidity? Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself. The more liquid an asset is, the easier and more efficient it is to turn it back into cash. Less liquid assets take more time and may have a higher Investopedia / Tara Anand 2 2
  • 4. Stock Loans What Are Stock Loans? Loan stock refers to shares of common or preferred stock that are used as collateral to secure a loan from another party. Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. This form of equity ownership typically yields higher rates of return long term. Common stock is reported in the stockholder's equity section of a company's balance sheet. Preferred stock is a class of stock that is granted superior rights to common stock, like higher dividend payments and a higher claim to assets in the event of liquidation. The loan earns a fixed interest rate, Investopedia / James Chen / Jiaqi Zhou stock loans 4
  • 5. stock loans Stock loans can be a useful tool for businesses looking to maintain liquidity and operational capacity. Here are some potential benefits of using stock loans: Stock Loans 5
  • 7. StockLoans stock loans Access to Cash Stock loans allow businesses to borrow against their stocks without having to sell them. This can be especially useful for businesses that need cash but don't want to sell their stocks due to potential tax implications or because they believe the stocks will increase in value in the future. stock loans PRP- Premium Referral Partner 7
  • 9. StockLoans stock loans Flexibility Stock loans can be customized to meet the needs of individual businesses. Loan terms can be tailored to fit the specific needs of the business, including the amount of cash needed, the length of the loan, and the interest rate. stock loans PRP- Premium Referral Partner 9
  • 11. stock loans StockLoans No credit check Because stock loans are secured by the stocks themselves, lenders don't typically require a credit check. This can be an advantage for businesses that may have a less-than-perfect credit history. PRP- Premium Referral Partner 11
  • 13. StockLoans stock loans No personal guarantee Stock loans are typically non- recourse, meaning that the borrower is not personally liable for the loan. If the borrower defaults on the loan, the lender can only seize the stocks used as collateral; they cannot go after the borrower's personal assets. stock loans PRP- Premium Referral Partner 13
  • 15. StockLoans stock loans Retain ownership With a stock loan, the borrower retains ownership of the stocks used as collateral. This can be an advantage for businesses that want to maintain control over their stocks while still accessing the cash they need. stock loans PRP- Premium Referral Partner 15
  • 16. StockLoans It's important to note that there are also potential risks and drawbacks to using stock loans, including the possibility of losing the collateral stocks if the loan is not repaid. Businesses should carefully consider their options and consult with financial professionals before taking out any type of loan. stock loans 16