Eligible Securities
- Stocks
- Bonds
- US Treasuries
- Municipal Bonds
- Mutal Funds
- Exchange Traded Funds (ETFs)
- Controlled or Restricted Stock
- International Securities
US STOCKLOAN Process
- To initiate the stock loan process, apply online through our request form.
- A specialist will contact the potential client to review suitability and eligibility.
- If approved, the specialists confer with the client to determine a customized solution.
- An account opening application will be sent to client.
- Once the account application is completed. Blue Diamond Capital will assist in opening the account and transfer of assets to with our lenders. (This is no different than opening a broker, but is done through our exclusive channel.)
- Depending on the lender, further application forms or documents may be required. Most financial firms just require the latest brokerage statement as proof of assets.
- Once the assets are transferred to the new account, the client can begin withdraw.
- To withdraw money, clients can use issued checks, debit card, or wire transfers.
- If approved, the specialists confer with the client to determine a customized solution.
- Because stock loans are directly tied to investment portfolio, we suggest clients consider stock risk management strategies.
- It is not requirement, but client should consider professional help. Blue Diamond Capital can assist.
Loan Amount
Depending on the securities, the loan amount can be as much as 90% of the portfolio value. Bonds are can reach to 90% loan-to-value while stocks can be as high as 70% loan-to-value. The risk, quality, trading volume, and volatility of underlying securities are important considerations in the loan amount.
The minimum initial line of credit amount is $50K and the required portfolio to support it, which would depend on the loan to value ratio.
Stock Loan Advantages
- High loan-to-value
- Very attractive rates
- Simple qualification
- No FICA, credit, or income check
- Loans can be used for any purpose
- No personal liability
- Convenient access to funds
- Retain ownership/title of securities
- Retain upside/apprection of stock
- Keep dividend and income benefits
| Eligible Securites | Maximum Loan-to-Value |
|---|---|
| Publicly Traded Stocks | 70% |
| Corporate Bonds | 85% |
| US Government Bonds | 95% |
| US Municipal Bonds | 90% |
| Mutual Funds | 90% |
| Exchange Trade Funds (ETFs) | 70% |
| Portfolio 1 | Portfolio 2 | |
|---|---|---|
| Securities | $100,000 of Stock | $100,000 of Bonds |
| Loan-to-Value (LTV) | 70% | 90% |
| Loan Amount | $70,000 | 90,000% |