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. A securities-based credit line meets your needs perfectly. 

You turned to A. B. Nicholas after finding them online because you wanted to retain gimmick-free ownership of your stock portfolio in the hope it will continue growing. You want to remain invested, to keep your assets, and have no desire to sell your stock portfolio just to raise needed cash. 

You turned to ABN and their famous LeverageLine (Securities Backed Credit Line) program. Why? Because you knew that when U. S. Stock brokerages and their banks compete for your business, you stand to get the best deal the financial markets can offer. That spells more money in your pocket rather than flowing down the drain as is the case with typical margin loan rates. 

Still skeptical? Consider this:

You go online to search for financial resources land in an SBA — Small Business Administration. Your first wake-up call will be the paperwork and documentation you must assemble. Reams if it. Every asset (as per SBA guidelines) you own must be documented and presented with your application. Credit report too. The government must be free to take it all if you do not repay in time. That includes your house, your vacation cottage, your family side business, and anything else of any worth including your stocks and securities! The SBA Lender (Government backed loan) can include it all as collateral for your SBA business loan. And this is the government after all; no room for managerial common sense or “personal circumstance” negotiation. 

Your SBA loan comes with an exorbitant price tag too — 7-12% annual interest. Your $100,000 credit line could actually cost you $112,000, including high overall bank/SBA fees and closing costs.

Compare this to the average LeverageLine from A. B. Nicholas, where the rates for your stock loan hover around 4% or even less. Your $100,000 credit line will only cost you $104,000 with LeverageLine. Even with an ABN fee of 1%- 1.5% ($1,000 – $1,500) after closing, payable from your credit line, your total cost is around $105,000. That’s still a savings of several thousand over SBA lending at 12% and minimal closing cost!

Of course, the money you save increases as your line size increases. Your $1,000,000 SBA credit line, for example, costs you $1,120,000; your ABN LeverageLine by contrast is closer to 3% — or $1,030,000 — a savings representing cash-in-pocket of $90,000. A significant saving, so much faster, much more flexible credit line to use for your business and personal needs. 

So, get a free LeverageLine portfolio loan quote today at www.abnicholas.com/quote. Or call and inquire at 202.379.4744 x2 during business hours EDT. We’re ready to serve you!