Is It Possible to Build a Better Structure Than a Conventional Margin Loan? Yes.

They say necessity is the mother of invention. So few were surprised when back in 2009, in the midst of the Great Recession, that way, a small franchise consulting firm like ours would find itself in difficult circumstances given that conventional lending windows had been closing left and right.

After all individuals who were looking into buying franchises couldn’t very well continue without a robust lending environment and even those with great credit and good relationships with their banks were having difficulty in those days. Plans were being shelved and many individuals who would hope to start their businesses are franchises found themselves unable to do so.

We decided to look at individual securities portfolios not with an eye on inviting people to sell them, because for many of the prices were so low they were looking at a great big losses, but rather to use them as they were as collateral. But rather than relying on conventional margin loans, we knew the franchise in business buying market needed something far better than that.

The early days were hit and miss. We tried various approaches some failed some succeeded. In the end we developed a network of top FINRA-registered executive advisors, all with solid backgrounds in U. S.-based financing. All employees of major household-name, publicly known institutions willing to give us competitive, wholesale prices and structured stock loans in a manner that was convenient and preferred by our particular type of borrower.

This is how the credit line program we dubbed “LeverageLine” was formed. Today we are a successful niche financing firm that refers eligible clients into a licensed, professional network that allows them a competitive loan quote, and our network is growing yearly with new “LeverageLine” type wholesale and low-price lenders to serve A. B. Nicholas clients. Our goal: to deliver the very lowest possible interest rates and highest loan to value plus as many other client-friendly features as possible.

Our reputation has been built on it. We refer: you win.

Related Posts

Why Am I Stuck with an Expensive, Impersonal, Insufficient Stock Margin Loan?

Why Am I Stuck with an Expensive, Impersonal, Insufficient Stock Margin Loan? 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

Why would you throw thousands of dollars down the drain?

Why would you throw thousands of dollars down the drain? You are an owner of $75,000 or more in stocks, bonds, T-Bills, or mutual funds. You are ready to use it as collateral for a credit line to support your new franchise or business acquisition. A stock loan or portfolio loan, as it is sometimes called.  You chose this path because personal and business interest rates are sky high now.

Opportunity Cost and LeverageLine

What Is Opportunity Cost? Opportunity costs represent the potential benefits that an investor misses out on when choosing one option over another, in this case, in foregoing an A. B. Nicholas LeverageLine versus other choices. Because opportunity costs impossible to completely know for sure, by definition, they are often ignored or not even acknowledged. Recognizing a missed opportunity from all perspectives should be a requirement for any investment — or

Join Our Weekly Newsletter

We do not sell, communicate or divulge your information to any third-parties.