Why Borrow Not Sell?
If you are a unicorn founder or executive, and your major asset are your private shares, maybe it's best for you to borrow than sell. Here's why:
Retain Future Gain
Keep your core portfolio for future growth.
2. Defer Immediate Tax
Avoid triggering capital gains taxes that would result from selling your stock, as you maintain your position while accessing liquidity.
3. Flexibility and Speed
The approval process is typically faster and more flexible than traditional loans, with fewer requirements related to income or credit history.
4. Because You Can
Most people sell instead of loaning against it is because they lack of resources or short of amount to get a loan from the lenders. Fact is: not all private shares are liquid. Most lenders are very reluctant to financing for private shares for individual clients.
