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How to get a stock market related loan

By Edited Aug 20, 2016 1 0

The stock market can be a very lucrative way to make money. Not only can you invest in individual stocks, you can get someone to make the picks for you. The problem is, the stock market is a rich mans game. Unless you have the proper capital, it is unlikely you will make much money. The good news is, there are loans specifically designed for this purpose.

Things You Will Need

pen and paper

Step 1

Get your investment plan in order. The single most important factor in getting a loan is your business plan. If you are investing in the stock market, you will need to have an original investment idea that is well articulated. Sometimes, getting a loan is as simple as convincing someone to believe in you. A lot of experienced lenders will go ahead and give you a loan if you have a good business idea.

Step 2

Apply for an SBA loan. These loans are backed by the U.S. Small Business Administration. These loans are used to spur economic growth and are given to different types of small business owners. As a stock market investor, you can create your own investment business under your name for virtually no cost. Most stock investors will create a small business under their name so they can apply for these types of loans.

Step 3

Seek out Angel investors. Angel investors are private lenders who loan to those seeking start-up capital for business or general investing. Again, if you have a good plan for success in the stock market, these types of investors are more than willing to lend.

Step 4

Get a peer-2-peer loan. Peer to peer loans are common now among private lenders. There are websites which you can search through Google that automatically connect you with potential lenders. These lenders are just like me and you except they have the capital to lend. For the most part, they are willing to take a risk if you have a solid plan.

Step 5

Get a line of credit. Certain credit cards and investment companies will offer you the ability to withdraw a certain amount annually. Most traditional credit card companies will offer you a line of credit. This is cash that you can use for stock investing. The interest rates are somewhat high but if you earn 20% or more from stock investing, you should be able to pay back the loan with interest.

Step 6

Verify the company you are borrowing from. Search each firm through the Better Business Bureau website to verify legitimacy. The recent spike in internet lending scams has led many to shy away from internet lending sources. There are many legitimate lending sources on the internet. Just be aware of unbelievably low-interest rates. Array

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