One of the biggest ways that the credit crisis of the mid 2000s impacted the average consumer is by drastically increasing the requirements needed to qualify for a personal loan. While traditional banks are no longer able or willing to provide unsecured consumer loans as often as they used to, there are still ways for consumers to obtain loans that they need.
One way that a consumer can get a loan is by taking out a loan from a specialty finance company. One specialty finance company that has been providing loans to consumers and small businesses for over a decade is Equities First. This company provides a unique type of loan in which they take a stock portfolio as collateral. In the event that the loan goes into default, they are then able to liquidate the collateral to pay off the loan. Since the company has a great form of liquid collateral, they are able to offer very competitive interest rates and fees and learn more about Equities First.
Taking out this type of loan can be a great idea for people who are in a number of different financial positions. One situation where taking out a stock secured loan make sense is when a borrower wants to delay or reduce their tax liability. Depending on how long you have owned a stock, it could cause a big tax liability to sell. In many cases, it makes far more sense to take out a loan against the stock, pay interest, and later sell it when the tax liability is lower.
Depending on your investment objectives and strategy it also may be a good idea to wait to sell. If you believe that a stock will increase in value in coming years, or will pay a nice dividend, it may make more financial sense to take out a loan then it would to sell and more important information click here.