To invest in any of the financial marketsBoth in national and foreign places, there is no other requirement than to have the necessary and indispensable capital to carry out the operations. From this reality, other aspects of no less importance, but that can be solved more easily, will be added. On one side, have the learning necessary to develop purchase orders more successfully. And on the other, have the necessary patience, in case things don't go as you had initially planned. From these characteristics, there are no more obligations for the good investor.
Focusing only on the monetary aspect of the investment, surely you have heard someone close to you, verify that You cannot invest because you do not have any savings to fulfill your desired desire to make your assets profitable.. And they will not be few, those who, caught by their (unfortunate) purchases, cannot sell them as they are very far from the prices due to this movement. And therefore, carry out new transactions in the equity markets, fundamentally to recover accumulated losses. Not surprisingly, they will be a good part of the small and medium investors who have problems financing their entry into the stock markets.
To prevent these things from happening, and although it is common, some banks have opted to offer their clients very special financing channels, and even original as to the nature of its destiny. They are none other than loans intended for investment, and which have been undertaken by a bunch of financial institutions to sell them to their main clients, especially the most sensitive to develop these operations.
From this perspective, these very peculiar loans can have a double destination, and not without interest for the recipients. On the one hand, to have the necessary liquidity, without the investments having to be sold (stock market, investment funds, and even other financial products), as a consequence of a bad operation that leads to losses being installed in the investment portfolio of the applicants of this product for financing. And on the other, to have the necessary cash to develop purchase orders, without depending on the balance of your checking account.
Don't undersell your investments
One of the most common scenarios that these clients have, and in which you may also be immersed, is that your portfolio of securities is handicapped, and you cannot (or should) sell their securities under the current prices set by the financial markets. Since they would be formalized with a negative balance in the final balance, which in some cases could be very acute, even with serious losses in the invested equity.
So that you do not have to make sales, total or partial, in these very negative scenarios, this kind of credit has been implemented. Very useful to avoid these situations, and that they will allow you to safely continue with the contracted values, while you manage to provide yourself with enough liquidity to face the most necessary expenses in your daily life (household bills, the children's school, the rent of your house, etc.).
In addition, you will be able to obtain an increase in the terms to close the operation, while trying to make the price of your shares rise in the coming months, or even years. And at least they reach their purchase prices, to sell them definitively and dedicate yourself to other operations, either in the stock markets, or perhaps in other alternative ones.
Liquidity to carry out operations
The other scenario that is presented to you is none other than when you do not have enough amount to undertake the stock exchange operation. It is something very common among retail investors, as is your case, and that either you cannot develop it, or they will need a financing channel to formalize your position in the financial markets.
These very specific credits will achieve your desired goal, but in exchange for paying interest every month, which will probably hurt your investment. Not in vain, you will have to consider whether it is really worth hiring these banking products, and in which scenarios will be more advantageous for your interests as a saver. Because to make your concession profitable, there will be no other solution than to increase the performance that you put out on the stock market. You will need higher earnings without wanting to successfully repay the loan.
Now is the time to assess whether it pays to demand one of the credits enabled for investment. The interest rate applied to you at this time will be decisive, and also if it entails commissions or other expenses in its maintenance or management. And finally, that you can amortize it in a reasonable period of time, that helps you meet the expectations created to solve your investment problems.
Loans granted by banks
The supply generated by the banking sector is still insufficient, and is limited to a few very specific proposals that some credit institutions have made. Nevertheless, You will always have the resource of hiring a more generic loan to face these situations (personal, for consumption ...), which are present in the commercial approaches that all banks have been developing. Always under a very powerful offer, in which you can find all kinds of credits, without exception, and even of diverse nature.
Of course, the credits destined for investment do not offer you particularly benevolent contracting conditions, but they are very similar to those of other financing proposals. Only that you have certain periods for its return that are adapted to the needs that you may present at all times. But little else.
As a consequence of these characteristics, the offer of the banks is reduced to a couple of proposals, that yes, can help you to get out of more than one trouble. And that it will be convenient for you to analyze them to determine whether or not their formalization will be favorable. Only you can indicate the path you should take on this occasion. And respecting your interests as a small investor.
One of the loans that you can find in the banking market is the Investment loan offered by Bankia for these special occasions. It is not a static financing model, but on the contrary, you can choose between a fixed or a variable interest rate, depending on your interests, and also how you want to channel the banking operation. In addition, you can extend its amortization with a system of monthly installments that can be up to 14 per year. It will surely help you to pay less every year, although the cost of the operation will always be the same.
It is not the only proposal that you have before you, but Deutsche Bank has prepared another alternative under these same characteristics. And that serves the same denomination, such as Investment Loan. It is made under a more competitive interest rate than in the other credits, so that you can formalize the operation with greater guarantees. And in any case, with a longer repayment term, depending on the maturity of your investment, and which can reach a maximum of 10 years.
Other entities, on the other hand, are more focused on providing their clients with other less specific financing alternatives, which are marketed as Guarantee Credits for Investments. And that they also have a very specific purpose, which is none other than to prevent you from mis-selling your equity positions. They are governed under conditions very similar to the previous proposals, and with hardly any difference in the clause that you will have to sign if you accept these suggestions.
Seven tips before your hiring
If you opt for any of the financing sources enabled by the banking system, it will be highly advisable that you meditate on a series of very useful keys to know if the operation will be profitable for you. And especially if it is convenient for you to sign the contract, and under what conditions. Only in this way can you optimize your interests, avoiding surprises that are not at all positive.
The formalization of any of these credits will only have to be developed when it compensates you with the capital gains generated through your investment. And for which you will have to do many numbers and check the effectiveness of the measure.
- Your selection in the loan should be focused on a product that presents a more competitive interest rate, and of course exempt from commissions or other expenses in its management (study, opening, early cancellation, etc.).
- You should only ask for the amount necessary to cover these operations, without exceeding the maximums that your bank will offer you.
- It is convenient that you study the financing offer by banks, because surely you will detect a proposal developed with better conditions, and especially with lower interests.
- If you opt for any of these loans, make sure you can make your payments effective, or at least, that you will not fall into a level of indebtedness that your pocket cannot support in the medium and long term.
- If you have other loans (or mortgages) granted, this demand will not be a good solution. Unless you have a high enough monthly income to be responsible for the operation.
- Try to exhaust other alternatives to seek financing, preferably among friends and family, so that its return is more profitable. Or even with the advancement of several payrolls, without any interest.
- Try by all means to look for a return period as short as possible, since you do not know what will happen to you tomorrow (unemployment, illness, etc.).