Using a HedgeLoan Stock Loan to Expand Your Business

What is the Intelligent Alternative?

It is the opportunity to expand your business with interest-only repayment or interest-accrued repayment while still retaining participation in your stock portfolio using an Intelligent Alternative HedgeLoan stock loann®.

John Shareholder owns a farm with a 10% interest note that collateralized by all of his equipment and most of his other farm assets. He needs expansion capital and owns 100,000 shares of the stock XYZ worth $10 a share, but he expects good news this year that will boost the stock's price and doesn't want to liquidate.

Solution: With a HedgeLoan @ 6.99% interest fixed, he can refinance the farm, get the capital to grow the business and remove the liens from all other assets.   If his favorite stock goes up, he can participate in the upside, and if it goes down, he can exercise his right to default on the loan (with no reporting to credit bureaus) and the collateral stocks acting as full satisfaction of the HedgeLoan obligation.

The good news? Either way, he keeps the capital he needed for expanding his farm.

Behind the Numbers:

Example:

In addition, he can go to the bank to get financing if he needs it in the future because all of his assets would now be free and clear. And the remaining $50,000? Perhaps a new tractor for the farm, or a new car for the spouse?

Please contact us here for your questions or to get a quick HedgeLoan stock-secured loan quote.