Designed for Franchise Buyers
Our LeverageLine securities-based credit line was built originally as a means to help franchise buyers get funding during the recent mortgage meltdown and subsequent financial crisis. Our clients wanted a loan service that was fast, with minimal paperwork and a means to an “in” to a conventional banking relationship via an asset-based loan relationship. LeverageLine aims to fill this need.
The goal, in addition to funding franchises, was to try to allow our clients’ investment to carry minimal debt service during the critical 1-2 years when the business was getting off the ground. With conventional lending very difficult, particularly for new buyers, our LeverageLine filled the gap.
We put this together as a custom securities-based line of credit using our client’s stocks, bonds, mutual funds, or other securities as collateral. We did this by painstakingly locating and partnering with a small group of carefully selected advisers who had experience in the franchise and commercial real estate industry and who would also offer the deeply reduced wholesale interest rates and custom features that our clients required.
A. B. Nicholas franchise-buying clients today can be sure of having their accounts with one of four major public U. S. brokerage and banking giants (disclosed on your term sheet) along with features that include waived account management fees; interest-only repayment; freedom to defer the interest-only payments to aid cash flow; rates below the best mortgages; a revolving line of credit with no maturity date; loan-to-value well above retail; and a supportive, fully licensed SIPC/FINRA lending facility that treats LeverageLine clients with gold-key service.
Clients who maintain their LeverageLine responsibility may receive priority consideration for conventional business/real estate financing to expand their investments later, having begun their relationship through this asset-based lending facility.
Buying franchises using the LeverageLine facility also means having an experienced professional adviser at your licensed lending institution ready to support you even though you are not paying them management fees — another advantage. There are no mandatory account management fees.
When we issue your term sheet, we disclose your lending institution and your lender advisor. The full history of both is available to you on www.finra.org in advance. Your financing is with the best the industry can offer.
Gather a recent brokerage statement and ID then proceed to our quote request form. We’ll have a term sheet for your review same day.