Versatile Credit Lines for Stock Portfolio Owners

ETFs Bonds REITs UPREITs

Get more out of your portfolio with LeverageLine

No Sale of Your Securities Needed

If selling your securities portfolio is not something you wanted to do for whatever reason – taxes, desire to hold onto your investments, or other reasons — our LeverageLine can be an alternative that will not require you to sell to obtain funds. 

Be Your Own Banker

Your line of credit makes you into your own “virtual banker”. Take as little or as much as you need; repay the principal when you wish; enjoy interest-only repayment terms and no maturity date in a credit-card-style revolving line of credit.

Highest Legal LTV

LeverageLine is not a margin loan, so our loan-to-value can go as high as 97% depending on the mix of securities in your investment portfolio. No other firm can make that claim with the consistency that we do. 

Rated A+ by the BBB

Rated A+ by the Better Business Bureau five years running.

The Advantages Are Beyond
Just Great Rates

Engineered from the ground up with direct input from our clients, our LeverageLine stock secured loan program gives you much more cash and flexibility than a margin loan. Pound for pound, we think it is also more personalized, inexpensive and flexible than any comparable margin loan or securities-based line of credit program offered through the typical brokerage or bank. Whether it’s a very flexible variable rate or fixed 2, 3, 4, or 5 year terms, we always offer fully licensed, no-title transfer credit lines and we continue to listen to our customers. 

All of our programs were designed by A. B. Nicholas in conjunction with several top-tier, fully licensed SIPC-FINRA household-name institutions, and every client is under the professional supervision of a carefully chosen licensed senior executive advisor at each firm. A. B. Nicholas services are therefore provided exclusively through major FINRA-member public institutions, but with a client-informed, custom twist. 

We serve you, not the lending institution. We receive no compensation whatsoever from our lending partners and/or their advisors. Our clients’ satisfaction with our services is our one and only goal at A. B. Nicholas. Our marketing is primarily through word of mouth from satisfied clients. 

Our LeverageLine credit lines are built with the philosophy that it is our clients who define our business model, not banks or lenders as you might expect from a typical franchise or commercial real estate firm. Back in 2009 we had to find a different way to get our clients funded with the great recession closing down lending windows across the nation. Today, although originally created for the franchise and business acquisition market, our LeverageLine  serves almost any financial need and does so with maximum security.

With LeverageLine client collateral (their securities portfolio) remains with the client-borrower alone: our lenders do not take ownership or title to your securities as a precondition to funding, just a simple lien on the asset. You will need to have your shares at our LeverageLine lending institution, in your solely owned new account therein so they can credit your new account to the institution (their incentive), but a simple background lien by the lending institution is all that is required to release between 75-97% of that portfolio’s value as credit to you.

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.

LeverageLine is inexpensive because traditional lender-side fees have been waived, exclusively for A.B. Nicholas clients. This mean you can enjoy a clean, direct loan from a top-tier licensed lending institution without being hit with numerous charges for extra services you probably don’t need or want. But if you do want additional services, there’s good news there, too: We have contracted with the best in the business, and they’ve agreed to offer those optional services to you at deep discounts as A. B. Nicholas clients over your current brokerage or bank once they know what your current brokerage costs are. 

LeverageLine is also simple because our program is very low-doc and your credit rating is not a factor in determining your loan rate, features or LTV.  (One caveat: you should not have any defaults on any government debt incl. student loans, or a recent bankruptcy or foreclosure in past three years). 

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. Our lending institutions will also always cooperate to assure potential sellers that you do have the financing lined up that you need to proceed. Just ask.

Perhaps you have one or more securities to use as collateral — maybe stocks, bonds, mutual funds, or any one of the many other marginable classes of securities. When you bring a multi-stock portfolio, with a diversity of securities, it creates a stronger asset for lending purposes. In such case 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. That said, we can of course accept single stocks trading on the open market at $5 per share or higher too.

We believer that we cannot be beaten on any multi-stock portfolio credit line offer. Our goal is the best possible line of credit for you, and our motto is that if a better securities-based line of credit has been created somewhere, A. B. Nicholas will provide it.

In sum, we offer:

A flagship program, LeverageLine, featuring wholesale interest rates, no mandatory lender-side fees or costs, the highest LTV in the market, and quickest delivery with minimal documentation and many custom designed features in a fully licensed facility with top-tier FINRA-member institutions and advisors.  We offer our financing in fixed and variable rate forms.

Our newest program,  OpLine, is similar to a our LeverageLine credit line, but the collateral is based on the client’s tax-deferred UPREIT Operating Partnership Unit (OPUs) securities. Our OpLine Finance Program permits the client to obtain liquidity from their UPREITs without having to convert the securities into taxable standard REIT shares beforehand.

By “no mandatory lender side fees” for ABN financial programs we mean exactly that.  As noted you of course can always opt for additional services beyond your loan program, and naturally you will pay some fees if you choose any such add-ons. But even then, as A. B. Nicholas clients, you’ll get those services at a discount too.

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 engage expensive optional services.  Your institutional lender understands why you’ve come to A. B. Nicholas.

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 privacy is taken very seriously at A. B. Nicholas. 

Your interest-only or principal payments, by the way, are not normally reported to credit bureaus unless you request your lender to do so. But 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 your objective by helping your company build a payment history file with Dun & Bradstreet.

LeverageLine credit lines serve those who can’t or do not want to sell their securities, e. g.:

  • 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 can benefit from having low-cost loan cash on demand.
  • 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 a unique and versatile LeverageLine for each A. B. Nicholas client, as we’ve requested and they’ve agreed. We’re confident that you’ll find your LeverageLine lender truly does go the extra mile to get the funding you need, when you need it, in the form and on the terms you demand.

LeverageLine involves very little paperwork and funds are typically available in about 7 business days. (Opline, which is a more complex structure, may take longer). Our licensed lender advisors can issue pre-approved funding terms in most 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 get you loan cash in hand usually within seven business days.

A simple lien on your account ensures your lender’s stake in the loan. It’s really as simple as that by design.

Easy. A brokerage statement and ID via our encrypted, secure quote request form is all you need to obtain a term sheet. (View the loan application process here.) There are no FICO scores and no credit rating threshold. In fact, credit does not affect your offer as long as you have no bankruptcy in the past five years.

Apply For A Loan in Minutes

Whether to finish construction, buy a vacation home, or supplement/replace your existing high-interest financing, LeverageLine can be the answer you’ve been looking for.

Speak to a Lending Advisor

202-379-4744

Note please: LeverageLine proceeds cannot be used to purchase more publicly traded, marginable stock, but can be used to purchase the stock of a non-publicly traded business enterprise (acquisition). Please read our disclaimer before proceeding. LeverageLine is not a residential mortgage nor is it intended to act as or replace a residential mortgage. 

Have questions? Ask an advisor