Stock Loan FAQ

A stock loan (also called a securities-backed loan or share lending) allows you to borrow against the value of your publicly-traded shares without selling them. You transfer ownership of the shares to the lender as security and receive cash. When you repay the loan, your shares are returned to you.

Non-recourse means your stock is the only security for the loan. If you cannot repay the loan, the lender keeps your shares but cannot pursue your other assets (home, car, bank accounts, etc.). This is a key difference from traditional loans where you're personally liable for the full debt.

SLS Group loans do have an equity call if your position declines enough, requiring you to post additional shares to cure it — similar to a margin loan. The key difference is what happens if you don't: with a margin loan, you're required to provide additional equity and remain personally liable for any shortfall, and your broker can liquidate your position without notice. With an SLS Group loan, because it's non-recourse, you're notified before any action is taken and can choose instead to walk away — the lender keeps the shares pledged, and you have no further obligation or personal liability. SLS Group loans also require no credit check and work with securities that brokers often won't accept for margin lending.

The tax treatment of stock loans is complex and depends on your specific situation. Always consult a qualified tax advisor before entering into a loan arrangement. SLS Group does not provide tax advice.

To qualify, you typically need: (1) publicly-traded securities worth at least $50,000, (2) shares listed on a recognized exchange, and (3) clear ownership (no existing liens). There's no credit check or income verification required—your securities are your credit.

We accept common stock, preferred stock, ETFs, ADRs, and some cryptocurrencies. We specialize in securities that traditional lenders often won't finance, including micro-cap and small-cap stocks, restricted stock (Rule 144), and shares on international exchanges. We fund loans on 52+ exchanges worldwide.

Yes. We have a specialized program for restricted stock, including Rule 144 shares, lock-up shares, and insider holdings. LTV is typically lower (25-40%) and we work with you on compliance requirements. Learn more about restricted stock loans.

No. Stock loans are approved based on the quality and liquidity of your securities, not your credit score or income history.

Shares in IRAs, 401(k)s, and other retirement accounts have special restrictions. Contact us to discuss your specific situation—we'll help determine if a loan is possible.

We fund loans from $50,000 to $50 million and beyond. The specific amount depends on your portfolio value and the quality of your securities. Use our calculator to estimate your loan amount.

LTV is the percentage of your portfolio's value that we can lend. LTV varies by security type: large-cap stocks may qualify for 50-60% LTV, while micro-cap or restricted stock may be 25-45%. Higher quality (more liquid, less volatile) securities receive higher LTVs.

Interest rates are fixed for the loan term and typically range from 3% to 7% annually, depending on security type, volatility, liquidity, and loan term. Blue-chip stocks generally qualify for lower rates than micro-cap or restricted stock.

We offer flexible terms of 12, 24, or 36 months. Choose the term that best fits your liquidity needs and financial planning.

Yes, you can typically repay the loan early without penalty. Check your specific term sheet for details.

Typically 7-10 business days from application to funding. The breakdown: application (5 minutes), portfolio assessment (less than 24 hours), term sheet (immediate upon approval), documentation (1-2 days), transfer and funding (1-2 days).

For a term sheet, just basic information about your securities. For the actual loan, you'll need a government-issued ID and a recent brokerage statement showing ownership. No tax returns, income verification, or credit reports required.

No. A term sheet is a preliminary offer with no obligation. You're free to decline or ask for modifications. There's no commitment until you sign a loan agreement.

Most transfers happen electronically via DTCC (Depository Trust Company). You'll initiate the transfer from your brokerage account using DTC instructions we provide. The process typically takes 1-2 business days.

You benefit from the appreciation. When you repay the loan, your shares are returned at their current value. The increase is yours.

You have options: (1) Continue making interest payments and wait for recovery, (2) Repay the loan and get your shares back at lower value, (3) Post additional shares to cure an equity call if your position has declined enough to trigger one, or (4) Walk away—the lender keeps the shares, and you have no further obligation. Unlike a margin loan, curing the call is your choice, not a requirement — you're notified in advance and are never personally liable for a shortfall.

Legal ownership transfers to the lender during the loan term. You have the right to reclaim your shares when you repay the loan. Voting rights are typically transferred during this period.

Dividends are typically passed through to you or credited against your interest payments. The specific treatment is outlined in your loan agreement.

Yes — SLS Group loans have an equity call if your position declines enough, at which point you'd be notified and asked to post additional shares to cure it. The difference from a margin loan is that curing the call is optional: because the loan is non-recourse, you can instead choose to walk away, and the lender keeps the shares with no further obligation or personal liability on your part. A margin loan, by contrast, requires you to provide additional equity, holds you personally liable for any shortfall, and your broker can liquidate your position without notice if you don't respond in time.

You have three options: (1) Repay the principal plus any remaining interest, and your shares are returned, (2) Refinance into a new loan (subject to current market conditions), or (3) Walk away—the lender keeps the shares and you have no further obligation.

Yes, you may be able to refinance into a new loan term. We'll re-evaluate your securities and provide new terms based on current market conditions.

Because this is a non-recourse loan, you can choose to not repay. The lender keeps the shares, and you have no further obligation or liability. This may have tax implications—consult your tax advisor.

SLS Group (formerly Stock Loan Solutions) is a family office founded in 2006 and based in Salt Lake City, Utah. We specialize in securities-backed loans and direct investments. Learn more about us.

No. We're a family office, not a bank. This allows us to be more flexible, move faster, and work with situations that traditional lenders can't or won't touch.

SLS Group is not a registered securities broker-dealer or investment adviser with the SEC or any state regulatory authority. We do not offer investment, tax, or financial advice.

Simply submit an inquiry or call us at 866-446-1009. We'll ask about your securities and liquidity needs, then provide a term sheet within less than 24 hours. There's no obligation.