Ever Considered a Low-Rate, Quick-Closing, SIPC-insured, Institutional Credit Line Using Your Stocks or Other Securities as Collateral? Perhaps You Should!
Through a strategic partnership with a leading U.S. provider of securities based credit lines, we are pleased to announce the addition of an secure, fully licensed financing option for those who own eligible securities. The program is managed through a major "household name" U. S.-based investment bank and brokerage and allows owners of stocks, bonds, mutual funds, and many other types of securities to leverage the value in those assets into a revolving line of credit with an LTV between 65% and 98% depending on the underlying securities. Rates are low wholesale rates, well below market, averaging 2.83%-3.24% for credit lines from $100,000-$800,000, and even lower for larger portfolios (jumbo credit line clients can partake of rates as low as 0.9%..!) Repayment is flexible and interest-only, although clients are welcome to make principal payments when they wish.
This is a relationship-oriented lending institution, fully licensed in all 50 states and most foreign capitals. The securities-based lending program allows ultra-fast closings averaging two weeks for most clients. Clients with their securities-based line in place are charged nothing to keep it there; interest payments are only required if the client chooses to draw from the line. There are no hidden costs or fees of any kind.
What's more, this has been tailored as a virtual "no-doc" loan, an asset-based financing program where the securities are the lender's sole recourse in the event of default. No financial statements, credit checks, or asset verifications are required for eligibility, allowing the opening of the line to be a speedy, headache-free process from start to finish.
Getting started is simple. Our minimum credit line authorization (though you can draw as much/little as you wish, up to your authorization) is $100,000, and you'll need stocks or other securities trading at least at $10 a share. You'll need a portfolio valued at least at $155,000 in total to get to that minimum $100,000 authorization, since the minimum loan-to-value is 65%. You can also bring cash into the equation that can be restructured into low-volatility, high LTV securities such as T-bills if you want, which can bring your total authorization to $100,000 too. You will need a copy of a picture ID and a recent brokerage statement to obtain a free, no-obligation Term Sheet.
Your Term Sheet will contain your credit line quote and all of the details, and you can sign with a few clicks electronically to indicate you understand your offer and would like to proceed with lender disclosure and your first conference call with your licensed lender advisor. Again, keep in mind that you owe absolutely nothing and are under no obligation to proceed with your financing throughout this process.
If you would like to proceed with your credit line after your initial licensed lender advisor conference call, your account will be opened for you by your lending institution, solely in your name or in that of your company (never jointly owned by the institution) and your securities and any cash will with your permission populate your new account. At this point you simply have a robust, SIPC-insured brokerage account (and FDIC-insured cash account) with online access, freedom to trade as you wish, etc. as with any major U. S. brokerage account.
Once your account ready to serve as guarantee for your credit line, your credit line agreement will be provided by the institution's banking division, which will mirror your Term Sheet (or occasionally be better, but never worse). There are no last-minute surprises, fees, etc; your Term Sheet will have correctly portrayed your financing. If you choose to sign your credit line agreement, your line will be open in approximately 48 hours, ready to access by wire or checkbook/ATM debit card (which will be couriered to you after you sign your credit line agreement).
Note that this is an elastic account; if your securities should rise in value, you will have access to additional cash value in your credit line. Remember too that with this lending facility, those who may want conventional business credit in the future will move to the "front of the line" as their relationship to the lending institution will be equivalent to the value of their portfolio and the value of the line authorizations. Thus, a client with a $1 million portfolio, and a $650,000 line of credit, has a $1.65 million relationship with the lending institution. This can help clients who need to expand or purchase additional businesses in 6 months-1 year or more but who want to avoid the strict qualifying requirements, the risk to other assets (e.g., homes) that can come with standard SBA or bank financing. Your securities-based credit line, furthermore, is an asset-based loan that is not reported to credit bureaus, which can take pressure off of other bank-financed investments.
Clients with existing margin loans or other loans against their securities can have their securities credit line lender pay off the pre-existing loans and roll their securities into a new, much lower-rate credit line here. And those concerned about selling their securities for tax reasons can refer this facility to the licensed CPA to review for tax treatment, and may note that the securities are never sold to fund the loans, but remain accessible online and in person 24/7 – and may even be traded, if the client so wishes, as they also service to guarantee his/her credit line.
A securities-based credit line lets you tap the value of your portfolio without selling your securities. It takes pressure off of other financing you may have. It comes with very low rates, closes in two weeks on average, and allows you to establish a new line of financing through a relationship with a new major, licensed U. S. lending institution. Contact us with your questions, or if you have your ID and brokerage statement, get your free, no-obligation quote and Term Sheet within one business day.
Maybe it's time to let your stocks keep working for you even as you tap them for a line that you can use for other investments or financial needs. Get started today!