Though small businesses are critical to job creation and the overall growth of the US economy, their access to adequate business financing has been persistently challenging. Your business plan will fall into chaos if there is no solid financial support to back it. That’s why as much as possible if there is no cash on hand, tap into your other resources. Why not use your public stocks as collateral for business loans?

Stock Collateral Loans are Perfect for Entrepreneurs Who Need Working Capital ASAP

We all know small businesses have a high mortality rate. If you want to belong in the 80% of small businesses that can continue to thrive even after a year, your business needs to have a stable positive cash flow. 

You have to be ready for unexpected expenses and have quick financing solutions to get yourself out quickly if you’re currently in a cash crunch. If you have angel investors on speed dial and loved ones who can lend you vast amounts for your working capital, then you’re lucky, but if there’s none, go for stock collateral loans. 

Seasoned Wall Street veteran Matt McCall advises you to grab every investment opportunity. Your public stocks will also give you a chance to diversify your portfolio. With your public stocks as collateral, not only do you see them earn some revenue, but you also get to see them grow as a new investing strategy.

Lenders Prefer Liquid Collaterals (a.k.a. Public Stocks)

Ready yourself, so you qualify for a small business loan. A business owner needs to build his credit scores, know what’s on the lender’s checklist, gather documents, develop a business plan, and of course, provide collateral.

We suggest you offer liquid collateral, as it easily gets you the most sought ‘APPROVED’ stamp on your business loan application. Liquid collaterals include cash and cash equivalents (public stocks, mutual funds, and other investments). 

Cash is the most liquid of them all, but if you got none, then your highly valued public stocks are the next great thing. This type of lending is viable since the modest majority of Americans own public stocks.

Aspen Commercial Lending makes sure that your interests always come first. We have a team of experts and funding resources that could help you provide your business needs. Contact us so that we can start collateral appraisal and offer options that are best for you.