Your first stock loan? Or your fifth? No matter. You owe it to yourself to stay informed about every aspect of your securities loan before you sign on the dotted line. On this page we highlight questions and issues we feel you should understand.

If you still have questions after going through this page, please drop us a line via our Contact Form and we'll be happy to answer them.

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You are and always will be in good hands with HedgeLender. We work overtime to try to make sure that every loan quote we deliver to our valued customers is rock solid in every conceivable way. We stand by our clients and believe our loan quotes to be the very most competitive in the industry. Our institutional Premier line of loans is the most soundly managed, secure program in financing today. You could read no further and be assured of dependable professional services if you did nothing more than fill out your HedgeLender application.

But as with any profession, and in particular the financial industry overall, incompetent and unscrupulous parties are alive and well. It is not unusual for a new stock loan or securities loan client to be overwhelmed by a canned website or a smooth sales pitch when they are in need of cash. Wise borrowers, however, will always keep their feet on the ground and consider a few key criteria before they proceed with any loan.

Here are a few questions we think you should ask. What other questions you choose to ask or how you choose to respond to the answers is, of course, entirely at your discretion.

The Question: "Must I transfer title and name of my shares prior to funding?"

This is an important question, not because the transfer of title or name necessarily implies any particular added risk. Such transfer may indeed mean more risk, but the mere fact that a transfer occurs doesn't mean, in and of itself, that you are any more or less likely to receive your shares back upon repayment. A lender, for example, that takes title of your shares may do so for the simple and very logical reason that this is the level of security they need to advance loan funds.

All the same, you are having your assets move out of your name into another name. Until your loan is repaid, you will have no access to the shares. An account statement will be your record. This is fine for many borrowers, but worrisome for others. Before you entertain any loan quotes from any securities loan company, ask yourself if transferring name and title of your shares is acceptable to you as part of your overall stock loan or securities financing structure.

The Question: "Is an institution-backed securities loan program safer?"

You aren't necessarily comparing apples to apples. Safety is a combination of many factors, including the overall health of the company or institution holding your collateral. But a strong, institution-backed program does provide the full power, reputation, and transparency of a licensed and regulated financial enterprise, whereas a private placement loan - even when very soundly managed - often does not.

A true institutional program permits the client to hold his collateral securities in his own account, name, and title while a lien is placed against the account. HedgeLender's program ensures that final details of the loan are handled entirely by a licensed account manager at the institution, so that once the term sheet is signed, the client has full access to a range of flexible options and institutional services to support his/her loan. In a strong program shares are always accessible and visible and the process is entirely transparent, as well.

HedgeLender's institutional loan program Premier offers one more safety measure: SIPC insurance and the overall program backing of a large, well-respected NY-based equity fund. For this reason, we feel that it is possible to say unequivocally that indeed, the HedgeLender Premier loan program is the strongest, most secure securities-backed financing program anywhere.

Whether you are in a position to choose a program where shares remain in your own name and title, or a program where shares change title, always ensure that you have studied the program's track record and understand your exit options before concluding your loan.

The Question: "Am I being a fool for getting a securities loan? Why not just sell my stocks?"

Why not just sell your stocks? Why not? There's no objective reason why you shouldn't just sell your securities instead of getting a loan against them. In fact, selling your shares may be the perfect way to meet your objectives and a loan against them might be exactly the wrong decision.

But there will be others for whom the opposite is the case. Selling will not be an option for them for a variety of reasons. One might believe the shares will move upward and hate to lose all participation in the future. There may be some financial planning considerations through the advice of one's CPA, insurance agent, or attorney that make selling an unattractive or impossible choice. Emotion attached to inherited securities, founder's securities, or securities intended for some purpose in the future like a house purchase or college education can also play a part. The potential reasons are many.

So the answer to the question of whether or not a securities-backed loan is the right choice will depend on what your objectives are and what makes most sense financially for you. There is no issue of being wise or unwise for taking out a stock loan or a securities loan instead of calling your broker with a sell order. The question is whether it fits into your financial objectives or not, and that is something only you can determine.

Our Premier program, which comes in many varieties from our keystone Premier HedgeLoan® to loans resembling margin-style financing, are offered through the facilities of one of the top banking and brokerage firms in the U.S. A securities loan of this kind customized to your requirements through the able assistance of your licensed institutional advisor can be a very sound financial decision. Other forms of securities lending can also be smart.

The best way to determine if a securities loan is the right course for you - if you have any doubts - is to consult with your CPA or other licensed financial advisor. Conversely, you can proceed to apply for your Premier program loan (inquire here to start) and work directly with your own institutional account representative to finish up your own custom securities loan quickly, in real time. The choice is yours.

We recommend that prospective borrowers always be aware - be cautious - and only undertake stock-secured loans or other forms of securities-backed financing from companies they have fully vetted and trust. We naturally believe that will lead you to our door, for if you were to place your business with HedgeLender LLC you'd find that we care an rated A+ Accredited Business by the Better Business Bureau with a trail of happy clients and strong references. We pride ourselves on dedicated customer service, professional loan management, and maximum transparency from initial inquiry to final funding. Most of all, we are proud to deliver the most feature-rich, secure, client-oriented securities loans in the financial industry.

Wherever you place your collateral, know your lending organization and never gloss over your loan contracts. Read thoroughly. Vet your lender properly. A securities-backed loan can be one of the best financial decisions you'll every make, but only if you approach it as a smart, informed consumer and nothing less.