Stock Loan Process

Stock Loan Process for a Non-Recourse Stock Loan

  1. To initiate the stock loan process, simply apply online through our Request Form. Within 24 hours of contacting us a representative will contact you to review the stock and eligibility for a loan.
  2. If approved, we will consult with you to determine a customized solution. A guaranteed Term Sheet will be sent to you outlining the details of the loan such as loan amount, tranches, Loan to Value (LTV %), interest rate, fees and loan term.
  3. Once the Term Sheet is approved and signed by you a Non-Recourse Stock Loan Agreement will be prepared based on Term Sheet terms, the pledged stock and quantity, market price along with other specific terms outlined in the loan agreement.
  4. A brokerage statement will be requested as proof of ownership and status of the securities prior to funding.
  5. You setup an account in your name at the custodial brokerage designated by the lender in the loan agreement. The shares are held in the custodial account and are never short-traded.
  6. The loan funds are disbursed via an internal Delivery Versus Payment (DVP) directly to your account. Funds can then be disbursed by you to a place of your preference.
  7. You make interest-only payments quarterly. Any dividends from the securities are credited to the loan payment first and any excess is returned to you. The first interest payment is usually required upon the first funding.
  8. At the end of the loan term if all interest payments are made and the portfolio has maintained the required LTV, the same amount of shares originally pledged are returned to you. The loan term may also be extended or refinanced for an additional 12 months or more upon mutual agreement.
  9. The time frame from start to funding can be as little as 10 business days.

Contact Us for more details or any questions you may have. Visit or FAQ page for more information.

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