Securities-based lines of credit allow borrowers to access cash without liquidating their investment portfolios. The portfolio serves as collateral—qualified equities, bonds or funds that are already owned. Principal can be re-paid at any time during the life of the loan—only interest is due monthly.
1. Apply We’ll need a few facts to help get your client started: loan size, collateral accounts and some applicant information. Get the process started yourself or let us help you out.
2. Pledge These are your client’s assets that secure the loan. The values of the account holdings are available real time for easy and ongoing management.
3. Sign All documentation is securely delivered and can be digitally reviewed, signed and submitted.
Size: From $75,000 to $25 million, with advances starting at $2500
Use: Any purpose other than purchasing, carrying or trading margin stock
Facility Type: Revolving line of credit; clients can borrow, repay, and re-borrow multiple times
Collateral: Non-retirement investment assets, including stocks, bonds, mutual funds, and exchange-traded funds
Interest Rate: 1-Month Term SOFR plus a spread determined by loan amount, reset monthly
Repayment: Interest only, payable monthly; principal can be repaid at any time without penalty
Term: There is no maturity date; repayment can be demanded at any time
Fees: No application, origination, or annual fees
Documents: No personal financial statements, tax returns, or paper applications