A Better Securities-based Credit Line
For Your Stock Portfolio
Engineered from the ground up, our LeverageLine stock secured loan program is better than a margin loan and pound for pound, better than any comparable credit line program. Its sister program, OPLine, is the same program, but the only one in the market as of this writing that will provide a loan against your UPREIT operating partnership unit securities. Both programs were designed by A. B. Nicholas, and are offered by one of three major U. S. licensed bank/brokerage giants under the supervision of a carefully chosen advisor at that institution.
Both of our programs are versatile because though designed originally for the franchise and business acquisition market, our credit lines today can be used for virtually any purpose other than the repurchase of marginable securities. Client collateral remains with the owner; a simple lien by the lending institution releases the credit line.
Inexpensive because traditional lender-side fees have been waived for A.B. Nicholas clients, meaning you can enjoy a clean loan from your licensed lending institution without being hit with numerous charges or extra services you don’t need or want.
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 government debt or a foreclosure in your recent 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. This process allows us to offer hands-down the best rates and LTV in the market (we’ll beat any valid offer elsewhere).
So here’s your definition of what we offer at A. B. Nicholas:
“We offer first our flagship program, LeverageLine stock secured loan financing — a flexible wholesale-rate credit line with no mandatory lender side fees or costs, very high LTV, and fast delivery with minimal documentation and many custom designed features.”
“We also offer OPLine, a similar credit line but based on the client’s tax-deferred UPREIT securities, that 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 (for compliance reasons) on your term sheet when we send it to you. Your payments, by the way, are not normally reported to credit bureaus unless your 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 we can get you on that road.
LeverageLine credit lines serve those who can’t or do not want to sell their securities to raise funds, such as:
- 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) in 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 and 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. Get a LeverageLine quote here.
Please do not hesitate to contact us! Our staff at A. B. Nicholas LLC can be reached via our online contact form or at 202.379.4744 ext. 1 (or for agent-related matters, ext. 2). Hours of operation are 9-6 EST weekdays, and 10-2 Saturday.