The LeverageLine Credit Line Advantage
Engineered from the ground up, our LeverageLine stock secured loan program is better than a margin loan and pound for pound, more personalized, inexpensive and flexible than any comparable SBLOC program. Whether flexible variable rate or fixed 2, 3, 4, or 5 year terms, ours are licensed, no-title transfer credit lines built with input from clients just like you.
All of 0ur programs were designed by A. B. Nicholas in conjunction with several top-tier, fully licensed SIPC-FINRA household-name institutions, and are under the professional supervision of a carefully chosen senior executive advisors at each institution. A. B. Nicholas services are provided exclusively through fully licensed, major institutions only and we represent you, not the institution. We receive no compensation whatsoever from the lending institutions and advisors with whom we’ve selected.
Our LeverageLine credit lines therefore built for our clients, not banks or lenders, as you’d expect from a franchise and commercial real estate broker that, back in 2009, had to find a different way to get our clients funded during the Great Recession. Today, although originally created for the franchise and business acquisition market, our LeverageLine has been upgraded and now serves almost any financial need safely and securely.
Client collateral remains with the borrower alone: our Lenders do not take ownership or title to your securities as a condition to provide funding. You will need to have your shares are our lending institution so they can credit your new account to their side, but a simple background lien by the lending institution is all that is required to release between 75-90% of low cost credit to you. (PS: No FICO scores, credit ratings etc. are needed to determine your loan offer as this is a purely asset-based loan, like a car loan.)
Inexpensive because traditional lender-side fees have been waived for A.B. Nicholas clients, meaning you can enjoy a clean, direct loan from a top-tier licensed lending institution without being hit with numerous charges or extra services you don’t need or want. But if you DO want account management etc. we have contracted with the best in the business, who will offer those optional services to you at deep discounts.
Simple because our program is very low-doc and credit is not a factor in your loan offer, provided you don’t have a default on any government debt or a a recent bankruptcy or foreclosure in your background. (Even then, we may be able to assist you!) A term sheet is generated the same day you apply; it amounts to pre-approved financing that you can use in your deliberations with sellers of commercial property, for example.
Perhaps you have one or more securities to use as collateral — maybe stocks, bonds, mutual funds, or one of many other marginable classes of securities. When you bring a multi-stock portfolio, with a diversity of securities, the shares are averaged together to determine overall collateral value, which from the lender’s perspective lowers risk and allows him to pass on additional breaks in interest or in LTV to you. We can accept single stocks trading healthily in the open market at $5 per share or higher, but we can assure you that we cannot be beaten on any multi-stock portfolio offer. Our goal is the best possible line of credit for you, and if a better line is created, we assure you, A. B. Nicholas will offer it.
So here’s your definition of what we offer at A. B. Nicholas:
A flagship program, LeverageLine securities-portfolio-based, wholesale interest-rate credit lines with no mandatory lender fees or costs, very high LTV, and fast delivery with minimal documentation and many custom designed features. It comes in fixed and variable rate “flavors.”
Our newest program, OpLine, is similar to a credit line, but based on the client’s tax-deferred UPREIT Operating Partnership Securities (OPS) securities. Our OpLine permits the client to obtain liquidity from their UPREITs without have to convert the securities into taxable standard REITs.
By “no mandatory lender side fees” we mean exactly that. You of course can opt for additional services beyond your loan program, and naturally you will pay some fees if you choose any of those add-ons. If you want, for example, full account management, in-depth professional buy-sell advice, or wiring of funds overseas, fees will be charged. But even then, since you came through A. B. Nicholas, you’ll likely get those services at a discount.
If your goal is just a loan against your portfolio, as with most of our clients, you’ll be pleased to know you won’t be subject to a “full court press” to take up optional services by your advisor or a sales professional at your lending institution.
LeverageLines leave the kind of low-profile footprint that high net-worth clients often require. All processes are confidential and secure, delivered by a major fully-licensed public FINRA/SIPC institution that is disclosed to you (per compliance) on your term sheet when we send it to you. Your payments, by the way, are not normally reported to credit bureaus unless you request your lender to do so. However, if you are buying a company or franchise and need to build business credit for your enterprise, let us know and your lender can support you.
LeverageLine credit lines serve those who can’t or do not want to sell their securities:
- Those who need a quick tax payment solution during tax season;
- Those who seek a very low-cost stock secured loan as “insurance cash” for emergencies;
- Those who have unexpected medical bills that insurance does not cover;
- Those seeking a way to pay for college without putting their child(ren) into back-breaking debt;
- Those who are “net worth rich” but “liquidity poor”;
- First-time franchisees or business acquirers needing additional operating capital
- Those real estate investors who need to act quickly to, say, reserve a property, who benefit from having low-cost loan cash at their immediate disposal.
- Those in need of bridge financing (our loans are revolving lines of credit, so there is no mandatory maturity date.)
We’re proud of the user experience our clients report to us regularly. Each of our advisor partners personalizes versatile LeverageLine for each client, and you’ll find your lender truly does go the extra mile to get the funding you need, when you need it.
LeverageLine involves very little paperwork and funds are typically available in about 7 business days. Our licensed lender advisors can issue a pre-approved funding letter in some cases the same day as application. This means that unlike an SBA loan or loans involving extensive documentation and verification, your asset-based LeverageLine can have loan cash in hand to you usually within a week or two. A simple lien on your account ensures your lender’s stake in the loan. It’s a simple as that.
Have a pre-existing margin loan on your securities? No worries. Our lenders can pay off your margin loan and roll it all into your new LeverageLine. There is no “small print” with LeverageLine credit lines!
Please do not hesitate to contact us!
202.379.4744 | email@example.com