# Best margin lender for my situation?



## johnnydragon (23 May 2009)

Hi all,

I have a portfolio of around $350K~ mostly in Blue Chips. I am looking to to unlock close to $200-$300K to purchase a business. Right now on paper, I am asset rich but cashflow poor. Which Margin Lender will lend me money without the income test criteria? St George is coming to mind but wondering if there is a better alternative out there....


----------



## drsmith (23 May 2009)

*Re: Best Marin Lender for my situation?*

If you are cashflow poor how do you intend to service the margin loan in terms of interest payments and/or margin calls should the market fall ?


----------



## Soft Dough (23 May 2009)

*Re: Best Marin Lender for my situation?*



drsmith said:


> If you are cashflow poor how do you intend to service the margin loan in terms of interest payments and/or margin calls should the market fall ?




Agree, this really is a question for your accountant.

Better off getting some real professional advice on cashflow when starting a new business otherwise, you could end up in all sorts of problems.


----------



## johnnydragon (23 May 2009)

*Re: Best Marin Lender for my situation?*

It's all a valid concern, I didn't mention that I do have enough squirreled away to meet any calls, or worst case scenario sell some stock... assuming I have enough to cover interest payments and any possible margin calls?


----------



## Jack Payback (24 May 2009)

*Re: Best Marin Lender for my situation?*

Have you not considered a business loan? You can use the share portfolio and other assets such as property as security for the loan.

A margin loan is more flexible though and probably easier to get.

St George do not require cash flow with a margin loan, I opened one with them about 3 months ago.


----------



## Jack Payback (24 May 2009)

*Re: Best Marin Lender for my situation?*

"probably" easier to get. ?????

I mean _definitely!!!_


----------



## stoxclimber (24 May 2009)

Tough to get a margin loan at the moment without asset backing AND income, banks are tightening up on their margin lending portfolios from what I've seen. Might be worth placing a call to Macquarie, they've acquired some substantial margin lending portfolios lately so I'm guessing they'd be up for expanding that book.


----------

