Tap Your Stocks for Credit
We think differently here.
We think a stock loan program should offer only licensed
institutional management. We think your loan should be in the form of a line of credit, administered by a fully licensed Certified Financial Planner and FINRA-member in good standing with financial planning and other relevant experience.
We think your lending institution should be a name you already know, a top-tier SIPC/FDIC-member, a U. S.-based brokerage/bank — and nothing less.
They're your assets, and nobody else's.
Since this will be a credit line against your stocks or other securities, we think you should never have to lose title or ownership of your securities — not directly, not through tiny print on a contract, not at all — before you receive your financing.
We at A. B. Nicholas therefore have a simple premise: Your securities belong to you and no one else, and you should not have to give up ownership to obtain superior financing against them.
Security, yes, but great terms too.
Just because you put a premium on security and licensing shouldn't mean that you need to abandon the features you'd want from any great financing — such as low rates or fast turnaround.
So at A. B. Nicholas we say that your loan should be exceptionally competitive along every category, that it should outclass any comparable financing and that you should have total control over your securities just as you do now, but in a revolving credit line that you can use and reuse when you wish, or close when you wish.
Intelligently structured, client informed.
These are the elements of intelligently structured securities-based financing, and the good news is that we at A. B. Nicholas offers an easy-access gateway through a program we call LeverageLine™.
lines are provided solely
through licensed institutional members in good standing of SIPC and FINRA
Franchise-buying, business-buying specialized.
LeverageLine™ was designed back in 2008 to meet the needs of business and franchise-buying clients suffering through the difficult lending environment that followed the mortgage meltdown and financial crisis of the time, and these (plus commercial real estate investors) are today our main market. But our program is also for wide range of personal applications, including tax consolidation. In fact, it can be used for most any purpose other than the purchase of a primary residence or the purchase of additional marginable securities.
Trusted —because this is all we do.
Quality, licensed lenders. A. B. Nicholas enjoys an "A" rating by the Better Business Bureau and many major U. S. franchise and business-brokering firms have chosen ABN's LeverageLine as their exclusive securities finance offering for a very good reason: We deliver what we advertise. (View our current partner list here.)
Designed for cases where time matters.
No credit report is needed for lines under $2MM, and credit is not factored into your final financing terms. Documentation is very minimal: no extensive document production is required as a rule. As a simple asset-based loan between you and your licensed institution, there is no reporting to credit bureaus necessary. All of this translates into speedy financing that averages about 7 business days to the opening of most lines, some even faster.
A regulated, soundly structured stock loan program.
A cursory review of the history of the stock loan market shows that cases of unlicensed lenders who require a transfer of the clients' stock title have been resulted in clients losing their assets and being caught in various schemes designed to separate a client from his property. No such issues arise wth LeverageLine, where only major, licensed brokerages provide services that are fully regulated and secure by every measure and never require the transfer of your asset's title as a prerequisite to the opening of the line. (For an informed discussion of what the Financial Industry Regulatory Authority calls "the dangers of unlicensed, nonrecourse stock loan companies and programs", please read more here.)
Want to learn more? Download our All About LeverageLine presentation here (2.7MB, PDF). Our use the "Get Quote" button above to apply for your no-obligation loan quote and we'll deliver
a term sheet within one business
day. Or call us first at 202.379.4744 9AM-7PM EST M-F. (We return all messages promptly!)
A. B. Nicholas is Rated "A" by the Better Business Bureau
(Click Here to View)
An alternative to a sale.
Our original clients in the franchise/business-buying markets were faced with the conundrum of having to sell their stocks and other securities to raise cash, but if they did so, many faced steep capital gains tax liabilities. Many others sought to hold on to their securities in the hope that they would rise in value over time.
LeverageLine meets that need by leveraging, not selling, the client's stocks or other securities to raise the funds. True, a client could choose to sell their securities and buy others while they secure the line; or if the client were to completely refuse repayment of their loan then the lender would reserve the right to compel a sale of enough shares to repay what was owed to them (that is no different in principle from any asset based loan). Either of these scenarios could result in capital gains taxes. But in the normal course of a LeverageLine that is being responsibly handled by the client, no sale occurs.
Our clients get 24/7 online access and online statements on demand by simply logging into their account. Bank, brokerage, and LeverageLine accounts can be consolidated into one online access event. Your licensed lender advisor is available to you during business hours at no charge — because as an A. B. Nicholas client, there are no mandatory lender costs or fees (all are optional) other than a $150 annual fee if you choose to have checking account privileges.
Visit Our ABN White Paper Library
here to go deeper into this program.
Easy, Accessible Process..
Simply apply online
here with a copy of a recent brokerage statement
and a valid photo ID to obtain a term sheet. Digitally
sign the term sheet we send via email with two clicks. There is never any obligation incurred
in doing so, and absolutely no up-front fees of any kind, ever.
Your account will typically be open within 48 hours of
signing your credit line agreement. Your funds will then be immediately accessible by wire, check or debit card.