What is a Stock Loan?
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.
Unlike traditional loans, stock loans from SLS Group are non-recourse, meaning your shares are the only security. If you cannot repay the loan, the lender keeps your shares but cannot pursue your other assets.
Key Benefits
- Non-Recourse: Your stock is the only security—no personal liability
- No Credit Check: Approval based on your securities, not credit score
- Retain Upside: When you repay, get shares back at current value
- Fast Funding: From application to cash in 7-10 business days
Stock Loan vs. Selling Your Shares
When you sell shares, you give up all future upside, and permanently lose ownership. With a stock loan, you access liquidity while preserving your equity position. See also: Stock Loan vs. Selling Your Shares and Stock Loan vs. Margin Loan: What's the Difference?
| Factor | Selling Shares | Stock Loan |
|---|---|---|
| Upside Retained | No—you're out | Yes—you benefit from appreciation |
| Dividends | Lost | May continue (varies by loan) |
| Reversibility | No—can't undo | Yes—repay loan, get shares back |
