Do your securities qualify?
Here's a quick run down.
Mutual Funds Bonds Stocks UPREITS REITS
A wide range of securities are eligible For LeverageLine and REITLine financing...
- Your stocks, bonds, or mutual funds must be free-trading and must belong to you..
- If restricted, restriction should be coming off within no more than thirty days.
- Your securities cannot be private, but rather must trade publicly on a major stock exchange such as the NYSE or NASDAQ, or the equivalent on a British or Canadian exchange.
- Your stock, bond, or mutual fund security must trade on average at US $3/share or higher, consistently, over at least the last three months minimum.
- The average volume of trading activity must come to at least 200,000 shares per day over the prior 90 days, or $1 million in value traded on average per day . Most stocks on the major U. S. exchanges fit this trading minimum other than penny stocks (Not sure? Just drop us a note with the ticker symbol here).
- If jointly owned or family owned, then all relevant signatories will need to be party to or to legally consent if there is to be one representative on the final credit line agreement.
- A company (e.g., an S Corp), can be the signatory for the loan.
- If your securities are in an IRA, 401K, or Keogh plan they are not eligible for the LeverageLine program unless the securities are removed from the plan. (ABN offers no advice on removal of securities from retirement plans).
- There should be no bankruptcy, foreclosure, or abandoned student/government debt on your record within the past three years.
- Although credit is eventually pulled by your lending institution if you choose to proceed with your line, it is only used to verify your identity and any outstanding, unresolved potential claims on your securities assets as this would pose a risk to the lender if the portfolio was to be used as collateral. However, the specific interest or LTV features of your LeverageLine loan or credit line offer are not impacted as a result of such one-time inquiry and it is always later in the process, not a condition for determining the credit line offer’s contents if such offer is made.
- LeverageLine loan repayments do no show on your credit record and therefore do not affect any other loans you may have. Business borrowers who seek to put the credit line in their company name to build company credit, however, may request their lender to establish a D & B account to build such credit for their business. Those who want to build company credit should inquire in advance if this is of interest
Note please: LeverageLine proceeds cannot be used to purchase more publicly traded, marginable stock, but can be used to purchase the stock of a non-publicly traded business enterprise (acquisition). Please read our disclaimer before proceeding.
LeverageLine is not a residential mortgage nor is it intended to act as or replace a residential mortgage.
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LeverageLine can be the answer you’ve been looking for.