Why shareholders choose stock loans over selling shares or traditional financing.
Your stock is the only security. If you can't repay, you walk away with no further obligation—your other assets are protected.
Approval is based on your securities, not your credit score or income history. Your stock portfolio is your credit.
When you repay the loan, shares are returned at current value. If the stock appreciates during the loan term, you benefit.
From application to cash in your account in 7-10 business days. No lengthy underwriting or extensive documentation.
Unlike selling, a stock loan keeps you in the position. When you repay, your shares are returned at their current market value.
Non-US shareholders of US securities may be eligible even though their broker will not extend them a margin loan.
Interest rates are fixed for the loan term, providing predictable payments. No surprises from rate fluctuations.
We accept securities from 52+ exchanges worldwide, including many that traditional lenders won't touch.
See how stock loans compare to other liquidity options.
| Feature | Stock Loan | Margin Loan | Selling Shares |
|---|---|---|---|
| Non-Recourse | ✓ Yes | ✗ No | N/A |
| Credit Check Required | ✗ No | ✓ Yes | N/A |
| Retain Upside | ✓ Yes | ✓ Yes | ✗ No |
| Micro-Cap Eligible | ✓ Yes | Often No | ✓ Yes |
| Restricted Stock | ✓ Available | ✗ No | Limited |
| Fixed Interest Rate | ✓ Yes | ✗ Variable | N/A |
If your shares have significantly appreciated and you need liquidity, a stock loan lets you access capital without permanently giving up your equity position or future upside.
Traditional brokers often won't offer margin loans against micro-cap or small-cap stocks. We specialize in these securities.
Insiders or affiliates with Rule 144 restricted stock can access liquidity without selling outright.
Those who want to limit their risk exposure appreciate that their other assets are protected even if the stock declines.
For shareholders in smaller, less liquid companies, a non-recourse structure isn't just a nice feature — it's the reason a stock loan makes sense in the first place.
Microcap and OTC stocks can be volatile. A share price that looks strong today may face pressure tomorrow, especially in thinly traded markets where a single large transaction can move the price. With a standard margin loan, a price decline triggers a margin call — you're required to deposit additional capital or sell shares at the worst possible time.
With a non-recourse stock loan, that risk is capped at the shares themselves. If the stock declines significantly and you choose not to repay, you walk away. Your bank accounts, real estate, and other assets are untouched. For a concentrated microcap or OTC position, that protection is significant.
One underappreciated benefit of stock loans is cost predictability. Margin loan rates are variable — they move with the market, and in a rising rate environment, your borrowing cost can increase significantly over the life of the loan.
SLS Group structures loans with fixed interest rates for the full loan term. You know your quarterly interest payment from day one. That makes it straightforward to plan around the cost of borrowing, whether you're using the capital for a real estate purchase, business investment, or personal liquidity needs.
For founders, executives, and early investors in microcap or OTC companies, selling shares creates a public record. Insider sales are disclosed on Form 4 and are watched closely by other investors and analysts. Even a well-planned, well-timed sale can be interpreted as a signal about an insider's view of the company's prospects.
A stock loan is structured differently. Shares are transferred to the lender as security for the loan — this is a reportable transaction for insiders, typically disclosed on Form 4 — but it is not a sale. You are not permanently exiting your position; the shares are transferred for the term of the loan and returned when you repay.
The market reads a transfer in connection with a financing differently than an outright disposition. For shareholders who want to access liquidity without permanently giving up their position, that distinction matters.
Shareholders use stock loans for a wide range of capital needs.
Down payments, property purchases, or bridge financing while waiting for other capital to free up.
Working capital, acquisition financing, or funding a new venture without liquidating your equity position.
Deploying capital into other asset classes while maintaining your existing equity stake.
Tax payments, estate planning, or any personal capital need that doesn't require permanently giving up your shares.
Get a free, no-obligation term sheet in less than 24 hours.