Sometimes business goes sour for a while. Things like the weather, international events, and a sluggish economy can make cash flow tentative in a small or medium-sized business. If you own such a business and some stocks to boot, you might consider asking for a loan on equities during a slow time or an emergency.
You can ask your local banker about a loan on equities, and they will usually tell you that they will make a loan on stocks. Any conventional lender, it seems, will make a loan using equities as collateral.
But then you find out the way it has to be done. First of all, they will lend against only 40% of the value of the equities. After that, they will tell you that there are some equities that can not be used as collateral because government regulations will not allow it. Then they will tell you that the interest rate will be very high due to the nature of the collateral, and to make matters even more insulting, they will want a business proposal to let them know the purpose of the loan. The worst part is, it will take a while to get the loan together.
You may as well simply sell the stocks.
Not so! See Equities First AU before you make a rash decision. They will lend up to 80% of the value of the equities. They are a private company, so they do not have to abide by the government regulations that control institutional lenders and banks.
They will not ask for you to give them a proposal describing the purpose of the loan. They will charge a much lower interest rate. And the funding is right away. There was no reason to ask the conventional lenders in the first place. It is far wiser to see Equities First first.