What are bridging loans? A bridging loan (or ‘bridge loan’) can be useful if you need to borrow money for a short period. It can help to ‘bridge the gap’ if you want to buy a new home before selling your old one. Or if you need to release cash for business purposes secured against u residential or commercial property. How does a bridging loan work? There are two types of bridging loan: ‘closed’ and ‘open’. Closed bridging loans With a closed loan, there is a fixed repayment date – you will normally be given this kind of loan if you have exchanged contracts but are waiting for your property sale to complete. Open bridging loans With an open loan, there is no fixed repayment
Read more →There are several exciting opportunities – for new and existing property developers – including energy efficient developments, conversions of retail units to flats and proposed reforms of the planning system by the government. As a result, we are seeing an increase in development inquiries so we have created this short introduction to development finance to help clients – existing and new – understand the type of projects that development finance can be used for, the costs involved and how the funds are paid. What is a development finance? There are several exciting opportunities – for new and existing property developers – including energy efficient developments, conversions of retail units to flats and proposed reforms of the planning system by the government. Property development finance is
Read more →Chinese tycoons Jack Ma and Joe Tsai have pledged part of their combined $35bn (£25bn) stake in Alibaba in exchange for large pledged share loans from investment banks. The share pledges, which were made to lenders including UBS, Credit Suisse and Goldman Sachs, were made by offshore companies that control half of the two billionaire’s stake in the eCommerce giant, which totaled 5.8 per cent in December. The amounts of the share pledges were not disclosed but the pair have repeatedly borrowed against their stock since Alibaba’s US listing in 2014, according to documents seen by the Financial Times. Share pledges allow banks to accept stock as collateral for loans but the borrower retains ownership of the shares. Ma and Tsai, who are Alibaba’s two
Read more →
Borrowing Against Stocks: A Smart Financial Move or a Risky Gamble? Borrowing against stocks may seem like a risky move, but when done correctly it can greatly improve your financial situation. Many investors especially those just starting out, find themselves having far less money than their net worth would indicate. In the world of personal finance, there are numerous ways to access liquidity without having to sell your investments. One of these methods is borrowing against stocks, a strategy that has gained popularity among high-net-worth individuals and savvy investors. By using their stock portfolio as collateral, individuals can unlock capital for various purposes, such as purchasing real estate, funding a business venture, or paying off debts. However, while this option can provide quick access to
Read more →What Is Securities-Based Lending? Securities based lending involves using your stock or share portfolio as collateral to release cash in a short time frame. Basically, you’re taking a loan against your existing investments, such as ETFs, mutual funds, or stocks. Non-purpose loans, or securities based loans, are cost-effective and provide financial flexibility. Plus, you can use them for various purposes, from equipment purchase to office renovations or even private purchases such as house or property purchases. Most lenders will accept different types of collateral, including: Hedge funds Preferred stocks Mutual funds Single stock Equities With this type of lending, business owners have access to extra capital without the need to sell securities. This allows them to pursue existing investment strategies and take advantage of new
Read more →Securities Backed Lending and Stock Loans Certain investors, usually those classed as professional investors with considerable wealth and experience, have ready access to loan capital through a practice known as securities backed lending. These loans are normally issued through a private bank or other private financial institution, securities-backed loans and lines of credit can be particularly useful for those engaging in large purchases from time to time, such as buying real estate properties or acquiring private operating companies. What Is a Securities-Backed Loan? A securities backed loan is a debt secured against an investor’s portfolio of eligible securities such as stocks and bonds. The borrower deposits securities into a custodian account on which the lender has a lien, and the lender will often make available
Read more →