Why is a stock loan the right choice?

(EMAILWIRE.COM, December 15, 2010 ) United Kingdom - The answer, by sending the same question back, is "Why not?"

If someone, in consultation with a financial advisor or simply on their own conclude that this is the best path, that they do not care nor need to retain their securities, then that call to the stock broker might be the very best decision of all. There's no objective reason why they shouldn't just sell their securities instead of getting a loan against them, and if upon reflection that is the right move, by all means, do so.

But there may be equally good reasons for tapping those stocks or securities for cash for some other useful or profitable purpose, while retaining the right and ability to participate in their possible future growth. When that is important, an institution-managed stock loan such as the kind Freespirit facilitates may be just the answer.

Retaining an interest in a stock or securities portfolio after they've been sold, is, after all, impossible with an outright sale and losing that future participation may simply not be a desirable choice. When that is the case, a securities-backed loan is the solution.

So the answer to the question of whether or not a securities-backed loan financing is the right choice over a conventional sale through their broker will usually depend on what the objectives are and what makes most sense financially.

Discovering what securities loan(s) they qualify for can help clarify the issue, of course (borrowers are perfectly welcome to check by contacting Freespirit - there is no obligation when doing so).

But in the end, no one can make an over-arching, universal statement that a securities-backed loan is universally either wise or unwise. The question really boils down to whether a structured securities loan solution fits into their financial objectives and preferences or not, and that is something only they (preferably informed by a licensed institutional financial advisor) can determine.

Contact Freespirit for a no-obligation term sheet, then consult with a CPA or licensed financial advisor for their guidance. Note please that one application will be sufficient to determine eligibility for all program variants.

DISCLAIMER: Information on this website does not imply or suggest the sale or offering of any securities, any stock buying or selling advice, or financial advisory services of any kind. Tax, insurance, financial planning, legal or brokerage services are not provided. Clients are asked and required to consult only a currently licensed professional for advice on these matters.

Freespirit Trading Solutions
Quote Requests
+44 121 288 2803
support@uk-stock-loans.co.uk