Help and FAQ (Frequently Asked Questions)
How do I apply?
Use the Get Quote button at the top right to access our secure online form. We do not require your social security number and do not perform any credit checks with your application. There is not charge to apply. Attach a recent brokerage or bank statement and a driver’s license or other picture ID to verify identity, and that is all. Approximate time to complete: 5 minutes.
Who are your lenders?
A. B. Nicholas assembled a group of top-rated, fully licensed FINRA-member advisory executives at major U. S. financial institutions who have agreed to offer stripped-down, credit-line-only financing collateralized by stock, bond, REIT or mutual fund portfolios, for our referred clients. Each lender has agreed in advance when we added them to our referral network to charge no additional service fees beyond the interest on the principal you have drawn from your line. Each is ready to compete for your SBLOC business if your portfolio qualifies (see requirements). You are provided with your lender advisor’s FINRA background info link at the outset, too to help you make a choice.
Note: ABN is not permitted by law to use the names of the institutions that provide these services, as names are considered proprietary business information (trademark). However, we can guarantee that we only send our clients to top-tier U. S. institutions for servicing our clients’ financing.
How long does until funding?
Every case is different, but for most clients with stock portfolios and no issues related to ownership (e.g., divorce, court) your funds should be available in about 7 business days. In some cases, this can be longer depending on the ease of verification and processing, but rarely more than two weeks.
How are you able to deliver better rates and terms?
Our business model is based on two elements that reflect the preferences of our borrower clients. First, LeverageLine lenders must offer a credit line or fixed-rate loan to our clients only, not account management, investment advice, financial planning advice or other services (or costs) bundled into the loan process, as is often the usual case for any walk-in client at a modern brokerages or bank. Our aim is to give our securities-owning clients competitive pricing, LTV, and other terms, without the need for a pre-existing account within those lending institutions. Second, we send our client applications to as many of our lending partners as possible, the exact number dependent on the size and type of securities in your portfolio which are eligible per each lender. Sometimes this is just one; other times, it may be several more. This system has historically allowed us to deliver loan offers that are much more competitive than similar retail banking or brokerage stock-secured loan or credit line offers, with all the same security, licensing, and expertise you’d expect from any modern U. S. financial institution since it is a major lending institution that is handling and providing your loan 100%.
What is a REITLine?
REITLine is a unique lending program created in house with one of our lending Advisors, a finance Ph.D., who wanted to crack a difficult problem: Since many real estate deals involve payment with UPREIT tax-deferred securities, how can a client obtain cash from those securities without having to 1) convert them to taxable REITs and 2) Selling them. Conversion meant that they would become taxable, and costly. How do I get cash from the UPREITs without converting or selling?
We devised a program that could deliver up to 50% of the UPREIT value in a loan program that would not require conversion of the UPREIT Operating Partnership Units. Result: Real estate investors can still receive payment in UPREIT OPUs for their real estate sales, AND obtain some liquidity from them without a conversion or sale. View our REITLine Video here.
Can I get a LeverageLine and SBA business loan at the same time?
Yes. You can have the best of both. If you obtain your LeverageLine before you obtain your SBA or other financing, however, you may exclude the securities from being part of your SBA funding collateral. This process allows our clients to get the most value from their securities and their SBA loan simultaneously. You can also use your LeverageLine as a down payment on any asset-based loan. However, LeverageLine is not a mortgage for tax purposes nor intended to act as one, though you may use it purchase property freely.
Are fixed-rate loans available as well as credit lines?
Our standard LeverageLine is a variable rate product. This has several advantages for the client: 1) No maturity date; 2) Pay principal back any time; 3) Lower interest rates; and 4) You may draw as little or as much principal at any time up to the maximum, and pay interest only on what you draw. You can “be your own banker” with our program and choose how much you wish to take out and pay back. It is NOT a nonrecourse loan; but, the terms are very comfortable and preferred by the overwhelming majority of our clients.
The fixed rate program has 1) A set maturity date (e.g., 2, 4, or 5 years); 2) A fixed rate, payable as interest but in a conventional loan structure; 3) Full principal due at maturity; 4) higher interest rates on average; 5) Entire principal must be taken at one time.
It should be remembered that clients who choose fixed rate option who cannot pay the principal at the end of the loan term have a safety valve with our program: they can have their loan rolled into a standard variable rate loan (see above) with interest-only payments required at that point.
For the standard LeverageLine the principal may be paid back at any time in any manner, monthly or all at once when the borrower chooses to exit.
For the fixed rate option, borrower will repay the full principal OR roll the loan into our no-maturity-date variable rate standard LeverageLine at maturity.
98% of all ABN clients choose the standard, variable rate option, as rates are typically more advantageous, and the terms are more flexible.
Can I become a referral agent?
Yes. We also work with existing licensed companies that broker financial products, SBA loans, franchise and business acquisition, and luxury retail sales. Whether you are an individual or a company , please go to www.abnicholas.com/agents to apply. We require a clean legal recored, and completion of video training and an exam as part of the certification and compliance process required before any fees can be paid to you or client referrals can be made by you to us. A small exam fee ($35) is involved.
Do you offer any other loan programs?
We do not offer any other loan programs. We specialize solely in securities-portfolios-as-collateral lending via our lending network.