Application Process Overview
We’re all about making our client experience comfortable and secure. That’s why we’ve both simplified our application process AND invested heavily in improved top-of-the-line security for our clients.
Apply here or via the button below. You’ll need a recent copy of your brokerage or bank statement showing your stock, bond, mutual fund, or REIT/UPREIT holdings. (All data held in strict confidence and deleted after review by lender). This is typically easily available as a PDF file or JPEG file via your online brokerage or bank account,
You’ll also need a digital copy of your picture ID (for account verification) such as a driver’s license or passport ID with a photo page. Answer a few questions on our free application form, attach the two documents, and securely submit online. That’s it.
A licensed lender advisor, a member of the ABN team who is an executive licensed Registered Investment Advisor (RIA) and/or a Certified Financial Professional (CFP) at one of the several major “name” public U. S. financial institutions which are members of the ABN lending platform will then reach out to you directy with your offer. This is a FINRA-member and senior staff member at the institution who has agreed to abide by ABN “no extra fees, highest possible LTV” lending policies. This licensed advisor (with a flawless FINRA record), whose background you will receive in advance, will securely review your portfolio and give you (and us) your preliminary quote. As noted, he/she will speak directly to you (no “middle man) and if you wish to proceed with your credit line you are then.free to do so — or not. That’s because We put full control over this financing in your hands alone. Not anyone else’s. If your offer does not meet with your satisfaction, you are free to walk away and owe us nothing. We charge only a simple 1 point fee after delivery of your funds — if you choose to proceed and complete/receive your funding. You agree to pay our 1 point (1% of credit line amount) fee under these conditions when you apply.
If you and your advisor agree and choose to proceed, your advisor will then go forth under one of two scenarios as follows:
With your permission, your securities will be seamlessly moved electronically, to your new solely-owned (by you) account at your licensed lending bank/brokerage, always a top-tier fuly requlated ABN partner firm. Though unable by law to market these institutions by name here, we guarantee that they are all well-known, top-tier U. S.-based licensed institutions.
There is no “joint ownership” or any other transfer of title or change of ownership required for your loan funding, just a simple lien by the lending institution but your account must be in the lending institution brokerage for the process to make sense for the lender — for loan administration as well as security. (The transfer process does not require you to go to your current brokerage or bank, fill out paperwork, or confront your current brokerage or account manager to argue it out.. All is handled, with your permission, bank to bank by your licensed advisor from your lending institution, quickly and easily.)
Next your lender will provide you with your loan agreement. This will mirror any loan term. modifications you may have hammered out with your lender beforehand. (Note that you can ask for a copy of the loan agreement language in advance at any time, even before transferring your securities to your new lender account. The process at this stage is on your schedule and your pace). Often your final lending agreement contains even better terms than those offered at the outset. Our lenders are competing for your business, after all!
Once you choose to sign, a simple lien is placed on your account as security to ensure your lender’s interests, much like any asset-based loan like a car or home loan. The lien does not affect your ability to trade or access the account, but since it is guaranteeing cash advanced to you, any sale of the loan collateral assets if not replaced by similarly valued assets when there is an outstanding balance owed to the lender, can impact your loan terms; therefore, it is always prudent to consult with your lender advisor prior to making any trades and they will happily assist. Nothing else acts as collateral; only your securities portfolio. This facility does not accept real estate or other assets to secure financing.
Typically after signing your loan agreement, a separate checking account is then established for you, at the same lending institution, and once processed (about five business days on average) it will be ready for withdrawal up to the maximum credit allocation in your loan contract. You are only charged for the cash you choose to draw; there is no charge for what you have not drawn even if you are permitted to draw it. You’ll receive a checkbook, and a debit card, and you may also wire your funds to another bank or individual with a simple phone call to your lender manager.
Historically, the only wild car in the process that can impact deliver of funds is any dispute (e.g. divorce) that might affect the status of legal ownership of the collateral assets. (Criminal history can also result in a rejection.) Neither have ever occurred with any A. B. Nicholas client since 2010.