Let’s say you opted for ease and convenience. You’re paying 7-8% interest on your brokerage-provided margin loan and hate watching the cash flow out of your account. You’ve settled for a lousy 50% loan-to-value against your stock portfolio’s value and not a penny more. You are paying for side services, such as  advisory & processing services, slipped in behind your back but which you simply don’t need. 

 

In other words, you are sick and tired of handing your money to a brokerage that should rightly belong to YOU. 

 

Perhaps you always thought that the standard default margin loan that your current online brokerage offers was the best you could have hoped for. Perhaps you are among those who think it is convenient to just hit a couple of buttons and increase your ability to buy more of the same stock by 50%, maybe at the urging of your stock broker. That, after all, is what a margin loan is for — buying more of the same stock. You have have assumed your glad-handing stock-broker would only give you advice that is in your best interest. However, that’s not necessarily the case. 

 

Let’s be clear: your stock brokerage margin loan is NOT designed to fund a college education, buy a business, invest in a franchise, or pay a tax bill. It’s not designed to be used to purchase real estate. It’s not designed to pay off a federal or government debt. It’s money to buy more stocks. It’s what the SEC calls “purpose credit” which is why it is capped at 50% LTV. 

 

But suppose you are tired of paying 7% annual interest on your tiny 50% margin loan? Suppose you want the freedom to use the proceeds in any way you like, other than buying more stocks? If this is you, then sorry, you are out of luck with your brokerage-provided margin loan. So you turn to A. B. Nicholas, the “Lending Tree” of stock-portfolio-secured financing for business, personal, and franchise applications. 

 

Let us say you have $200,000 in your stock portfolio. You bought those stocks over time, but always looking for a good deal, you bought those you thought were undervalued, then watched as the price and value of your stock portfolio gradually rose over time. A few years later your smart investments have risen in value by over 50%. They are all worth a lot more now compared to when you first bought them. This means that if you choose to liquidate (sell) your portfolio to raise cash, your capital gains taxes will be very notable — and no doubt painful. After all, that’s your hard-earned profit flying off to Uncle Sam. It’s not definitely not staying in your pocket. 

 

You’re paying 8% for $100,000 in credit. That’s $8,000 per year. If you refinanced with A. B. Nicholas, you could get up to 90% LTV ($180,000 against your portfolio value of $200,000) and do so at 4% on average. That’s only $7,200 a year, and you are getting access to $80,000 more in cash, with far more flexible repayment terms. 

 

Turning to A. B. Nicholas to get a stock-secured loan offer that is truly customer-friendly can be a very smart move. And it’s simple. Very simple. 

 

First,  you’ll apply securely online by answering a few questions and attaching a recent copy of your stock brokerage statement. Your application will then be reviewed by any of the many licensed, FINRA-member U. S. lenders in our ABN network. They will provide a pre-approved financing offer within 24 hours based on the documents you will have sent, after verification of authenticity. The best offers — lowest rates, highest LTV, etc. — will be selected delivered to you — free of charge —  and if you wish to proceed, your lender will contact you. You may then ask any question you like, get whatever information about your lender you wish including FINRA records, and if you wish to proceed at that point, he/she will formally process your stock loan application and within about five business days or so, a line of credit at that bank, secured by your stock portfolio, will be opened and ready for drawing as little or as much as you wish. You’ve in essence “become your own banker”. 

 

Your terms will be interest-only required, and you have the freedom to repay the principal whenever you wish either partially over time or wholly. Draw what you need; leave what you don’t. Maintain the interest payments only, like a home equity line of credit. Need to request an interest-payment waiver for awhile as you get your new franchise or business off the ground? That option and other client-friendly features are all available to you when you apply through A. B. Nicholas. And by refinancing, you save a lot. 

 

Your credit line proceeds come with an interest rate of no more than (and often less than) 4% currently. That can be a huge savings over the 7-8% your brokerage margin loans cost you. And with ABN, since you’ve come to us for financing, not advice or add-on services that you don’t need, you get exactly what you seek: good financing. If you choose the financing offer, then that is all you’ll pay for. NO hidden fees or charges. No upselling — this is a requirement for any lender in the ABN network. And you will pay only after delivery of your funds. 

 

So bring your expensive, inadequate margin loans to us. Let us pay off your old margin loan and roll it into a much, much cheaper and more feature-rich LeverageLine stock loan from A. B. Nicholas. We will get you far more cash in hand, more options, more freedom, and far more savings and we’ll refinance quickly. Apply today! There’s no charge until/unless you choose to go forward with your financing, otherwise, you owe us nothing. (If you do proceed to loan completion, you’ll only owe us 1-2% of the value of the financing we have delivered, and only after delivery. This can be paid from the credit line if it helps your cash flow. 

 

A. B. Nicholas is where our clients are number one. Apply today! www.abnicholas.com