Re:Things to know about raising debt for startups
by crystoloxy on Wednesday April 20, 2022 @11:36PM
(#31105809)
Yes, you can get a pledged asset line, a secured line of credit collateralized by your portfolio. A PAL is not for a particular purpose, so you can use it for pretty much whatever you want — other than buying securities.
Random example: https://www.schwab.com/pledged-asset-line
Re:Things to know about raising debt for startups
by devmunchies on Wednesday April 20, 2022 @11:40PM
(#31105832)
> Secured by assets held in a separate Pledged Account maintained by Charles Schwab & Co., Inc., you can use your line of credit to…
What I expected, need to already have assets within Schwab
Re:Things to know about raising debt for startups
by drewrv on Wednesday April 20, 2022 @11:32PM
(#31105792)
There are companies that offer loans like this but the rates aren’t great. Also mortgage lenders don’t like it if your down payment is debt.
I believe wealthy people (so some founders) do this on better terms because they have a better negotiating position.
Re:Things to know about raising debt for startups
by devmunchies on Thursday April 21, 2022 @12:46AM
(#31106105)
> mortgage lenders don’t like it if your down payment is debt
How would they know unless you told them?
Re:Things to know about raising debt for startups
by Panzer04 on Wednesday April 20, 2022 @11:35PM
(#31105801)
You can certainly margin your stock and buy something else with the withdrawn money, often at very low rates (eg. 1-2% at IBKR), but that runs the same risk of automatic liquidation as all margin does.
let’s say I have a stock portfolio with X amount, could I get a loan with my stock as collateral for a down payment on real estate? That way I don’t actually need to sell stock to afford a down payment?
Would a bank shy away from that non-conventional loan assuming my portfolio is larger than a down payment and I make a good wage? Any googling collateralized stock shows me articles on making trades on loans from the stock broker, but not for using that money for something else.