The Process

A Simple Application Process

Your LeverageLine was designed for ease and simplicity: your licensed lending institution does all the work with just a simple online form to complete the initial application process.

Your SIPC-insured account is opened for you and it is yours alone, not jointly owned with the lender. Your licensed lender adviser at your lending institution, with your permission, moves the collateral securities you specify into your account — no different from you deciding to change your brokerage on your own, basically, except that your lender does all the work for you to speed things along.

After signing your loan agreement (which essentially mirrors your term sheet), a standard background lien is placed on your account by the lending brokerage’s own banking division. Your line is then open and ready for drawdown, and you may draw as much or as little as you wish, when you wish. That is the application process for approval and delivery of funds in a nutshell.

There is never any obligation to proceed during any of these steps. You do not owe any fee to A. B. Nicholas unless you both choose to proceed AND your funds are delivered as promised.

The steps in list form:

  1. Fill out our secure Application/Quote Request form 
  2. Attach a recent brokerage statement and matching ID (passport or driver’s license).
  3. ABN generates terms after conferring with one or more of our brokerage/banking partners.
  4. ABN creates and delivers term sheet via our secure online system, allowing client to “sign with two clicks.” File copy goes to to agent (if there is one) at same time. Client can call us at 202.379.4744 ext. 1 with any questions but client’s licensed lender adviser at his/her lending institution will provide progress reports at any time, on demand. (Agents, if any, advised by ABN).
  5. Client receives signed digital copy, fulfilling minimum compliance requirements set by lending institution. This locks in pre-approved offer but does not obligate client in any other way unless they choose to proceed.
  6. Client receives call from licensed lender adviser to answer questions and to set up account, if interested in proceeding. In some cases, lender adviser will call client prior to signing of term sheet to answer questions.
  7. Client will designate those securities he/she wants to use to secure his/her line of credit.
  8. Lending brokerage will handle transfer of assets to client’s new account at lending brokerage.
  9. Shares arrive (at this point client has a simple, standard brokerage account, with reports on demand, online access, etc.)
  10. Loan agreement signed, simple lien placed on account, separate cash banking account opened with funds for drawing. ABN fee due following delivery of financing as promised, may be paid from line or via card.
  11. Revolving line of credit, so client chooses when to close. No maintenance fees or costs until/unless client actually draws funds, and then interest only on what has been drawn, due in 30 days.

* Clients who would like to avail a fee discount may opt to pay in advance. 

A Credit Line Built for Speed and Security

We have picked our partners with great car and will not accept any unnecessary delays  — our clients expect nothing less — so every LeverageLine stock loan | credit line applicant moves through our system as quickly as possible from start to finish. Application process is concluded with funding in 7-8 business days standard, from initial application to availability of funds.

No Sale of Your Securities to Fund Your Line

Your securities are never sold to fund your line of credit. Your line of credit is from a fully regulated  multi-billion dollar institution directly — a major public U. S. financial firm, disclosed on your term sheet, via a multiply-licensed FINRA member senior lender advisors with no less than 15 years of experience.

You have all the usual features of any modern U. S. brokerage account because that is exactly what your account is; for all intents and purposes, an account identical to the account you now have only with only a different major household-name brokerage name at the top of your statement. Online access, reports on demand, and freedom to trade in your account just as you do now — are all standard. No change. Basic support and advice from your adviser is also at no charge — also standard (account management, if you want it, is available but at half price over other retail brokerages). Only the name of your brokerage will change, although you’ll have the most competitive stock loan | credit line financing in the market today available to you..

Note: you as borrower have a right to sell your shares, of course, and as with any asset loan if you default and make no repayment arrangements the lender reserves the right to force a sale of enough shares to make up what is owed. 

So grab a copy of your brokerage statement and ID and get your no-obligation LeverageLine quote today! Worst case, you can find out what we can offer you, since credit is not used to determine your offer. There’s no downside to learning more, and a whole lot of upside potential for your financial needs.

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