What is the eligibility criteria for hedge loan stocks?
If price has held steady or increased over the prior four weeks, and volume has been strong, then there's likely to be a hedge loan available for your portfolio. Stocks that have several zero trading days over the past 4-8 weeks or huge swings in price or volume over a relatively short period of time may find fewer offers than stocks with lesser volatility.
How long does it take to fund after the shares are in the lenders account?
Typically 3-5 business days after the stock clears the account.
What is the minimum and maximum loan amount?
$5,000.00 is the minimum. There isn't a maximum amount.
What can I use my loan money for?
You can use your loan money for anything you would like.
Why do I have to transfer my stock into the lenders name?
The stock is transferred into the lenders name in the event that you default. Your stock would then be liquidated to pay off your loan.
Why is it better to get a stock loan instead of selling my shares now?
By getting a stock loan you can retain your stock since you get the shares back once the loan is paid off as well as you get the money that you need.
What happens to my stock's dividends?
Depending on the loan program, your dividends will either be paid directly to you or credited against your interest owed.
Do my stocks have to be in electronic format?
We cannot hedge a stock until it is in electronic format. They will need to be converted to electronic format by your brokerage.
Is the transfer of my shares to lender safe?
Yes. Transfers occur via secure, nationally and internationally accepted transfer using the DTC system. Stocks reside in these transfer accounts to await hedging or are moved directly into a U.S. safekeeping account for the duration of the loan term, depending on the loan program chosen.
What is DTC?
The Depository Trust Company is a corporation owned by Wall Street brokerage firms that acts as a go between in security settlements. Ownership of stock and bond certificates are recorded on DTC’s computerized record-keeping system.
What types of securities may be used?
Free trading and 144 restricted stocks, publicly trading corporate bonds, US Treasuries and foreign securities.
What kind of credit score do I need to qualify for a hedge loan?
We do not use credit scoring in our program, and we do not report defaults to credit bureaus. The type and quantity of your stock is the only criteria we use to determine loan eligibility.
Is this a margin loan?
No, this is a non-callable, non-recourse loan as opposed to a margin loan.
Are there any fees or points on the loan?
There are no fees. Loan points are charged at time of actual funding.
Are there any hidden costs?
No. We do not accept up-front consulting or "commitment" fees nor do we authorize any of our agents to accept them and ask any client who is asked to pay them to report to us immediately.
If you still have questions, we welcome them. Send us an email at
support@hedgelending.com or give us a call at 1-800-671-4709.
