Defer Capital Gains Taxes with A Revolving Line of Credit

Choosing stocks and enduring the numerous ups and downs throughout the years have taken a lot of time for many investors. When it comes time to need money for a specific project or to engage in a new business, the choice to sell the stocks frequently arises, and it frequently appears to be the only way to get the money fast to, for example, invest in a new business or franchise.

Selling signals tax season for wise investors who have put in the time and effort to build a solid portfolio of securities that have, as planned, increased in value over time. Naturally, the profit that the investor makes is taxed as capital gains. This can result in a large loss of income that you could have used to expand your business or franchise, depending on the size of the sale. The age-old question of how much you are willing to donate to Uncle Sam from the proceeds of your diligent investment work remains relevant in light of a government in Washington that has pledged to increase tax revenue (hiring numerous new IRS agents, for example), as well as other policies that are designed to raise government funds through taxes.

Let us say loud and clear –

Pay your taxes!

Now, we at A. B. Nicholas do not and will not advise you to avoid taxes that you owe like any other taxpayer. But perhaps you are already paying taxes annually, or through sales or other lawful requirements. Let us say you are always ready to do your duty to your country and pay your obligations, but that willingness is not open-ended. Perhaps you resent the fact that thousands of dollars that could have gone into your business (stock, marketing, overhead, etc.) are no longer available to you. Many investors use terms like “assault” to describe their feelings as upon sale, they watch so much of your winnings in the market disappear down the state and/or federal rabbit hole never to be seen again.

Our program called LeverageLine is a network of top-tier, public, institutional banks and brokers that are willing o bid on your stock loan. We think this is the best way to deliver value to our clients. Doing this means our clients’ stocks and bonds have a chance to keep growing profitably even as you invest in a business. Those assets remain yours. None of it is subject to capital gains taxes since you aren’t selling a share to obtain your needed funds.

We are not accountants or financial advisors BUT…

Here at A. B. Nicholas, we don’t purport to be your accountant or financial advisor. That’s not our field, but we urge you to consult with these and other licensed professionals for any and all tax advice. But there are things we can indeed tell you. You aren’t selling a single share to obtain your needed business investment funds. You are, instead, putting up an asset (your portfolio) and treating it like any other asset with value — your home, your car, etc. — for an asset-based, very competitive line of credit by a major, household-name institution, but without walking in through the front door, where charges, fees, and other services will be pitched and frequently attached as a prerequisite before you can even apply for your securities-based credit line. Our program greatly increases the chances that you’ll get the market’s best interest rates, as our goal is for the lenders to compete against each other so as to deliver the best possible overall securities credit line the market can offer.

Does our A. B. Nicholas LevergeLine Network always deliver the absolute lowest loan rate in the market?

Well, usually it does. Occasionally a lender will try to come in from the outside when they hear you are using A. B. Nicholas. They will let you get your quote from A. B. Nicholas, then ask what it is, and will get some special rate exception from their boss to try to take or retain your account. We say so be it if that happens: at least we forced them to give you the best possible money-saving rate. But most of the time outsiders cannot match our program from security, licensing, track record, or quality of institutional lenders. We never use private entities, for example, only major U. S.-based institutions who want your business.

Our program tends to bring out the competitive spirit in the lenders who quote your credit line, so that the overwhelming majority of the time, you will indeed be getting the market’s very best rate but without the need to take on any other costly relationship with that institution — meaning no mandatory account management fees, investment advising fees, or fees related to other products that the brokerage is hawking. Here at A. B. Nicholas we know you came for financing and that’s what the lenders in our network are required to provide — just a credit line/loan. Nothing more unless you yourself request it.

But what if you obtain one of our credit lines, which are typically “interest only repayment required” so that your cash flow is not impacted when starting your business or franchise anew. Huge monthly loan repayment requirements could be so burdensome particularly in the first year of operations that many new businesses are out of business within a year or two. An interest-only required structure means far less pressure on monthly overhead, giving the new business a shot in the arm while it struggles to establish itself. That can be an important and welcome feature.

Is your credit line from A. B. Nicholas used for your business? Are you investing it solely into your business and not into luxury goods etc? If so, we ask our clients to confer with their accountants on the tax benefits that might accrue depending on your state and individual financial and investment circumstances. Many of our clients have structured their LeverageLine by working with their accountant or tax advisor to have their repayment liability converted into a tax-advantaged arrangement. Our lenders will always cooperate and will willingly work with your financial team to deliver the best end result for you. Though we at A. B. Nicholas are not allowed by law to provide any form of tax advise, we can tell you factually that some of our clients have structured their LeverageLine funds in tax advantaged ways so as to receive tax benefits when repayment their line. Consult with your CPA for details specific to your individual case.

What does it mean for taxpayers to obtain a securities-based credit line through out A. B. Nicholas network? Well, it means a better chance at saving a great deal of money on interest payments, some of which could have tax benefits (see your CPA), without capital gains taxes (because there is no sale of funds to raise the cash), and with no extraneous charges, fees, and so forth. No, we aren’t going to “guarantee you the best stock loan in America” or any other hyperbolic statement like this. But we can guarantee that you will receive a very competitive loan quote via our network, with a high probability that it will turn out to be the best rate in the market.

We could go on, but the many other benefits are not necessarily tax related. Our network tends to get you a higher release rate than other companies as well — meaning, more cash for you to draw from your line, cash you may want to have on hand. You get the satisfaction that you are getting FINRA-screened, licensed in all applicable states, established U. S. brokerage and banks to review and administer your LeverageLine 100% — no third parties or private parties. You’ll get a firm — ours — that is ready to work to get you the best possible quote — without charging you a penny in up front fees. That’s right — you can go through this entire process, use our quote to try to get a better deal from your existing stock broker, and then leave after we’ve done all the work. And you won’t owe us anything. We only get paid if we have delivered as promised. And then it is only 1% one time fee based on the total funds we have obtained for you but only after you have obtained your funds, and you pay pay it from those funds. If our offers are not good enough for you, then you are under no obligation to proceed or pay anything to A. B. Nicholas or the lender in our network. We want to keep this process as favorable to you as possible. We think the American business community deserves a break!


The main goal of our service is to get you the best possible interest rates, terms, and funds release as possible through having more than one lender review and compete for your business. In most cases, we achieve this objective for our clients. Though tax issues should always be considered, we are not permitted to offer tax advice as we are unlicensed to do so. But we can tell you that there are clients who have structured their LeverageLine to steer clear of capital gains sales and huge interest-plus-principal repayments. Being able to repay the principal on your timeline, not the banks’, is a feature of our interest-only financing that can be very helpful to your bottom line.

So why sell your stock portfolio if you really don’t want to if funds are needed? Try A. B. Nicholas instead. You can’t lose.



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