The Process, Step by Step

A Simple, Easy and Fast Process

When you apply for our LeverageLine, the process is straightforward, “low doc” and easy. Your first stop will be our secure Quote Form. Here you will provide your (the securities owners’) basic information such as phone, address, etc. and also a few items that help us assess your offer, such as whether your securities are owned free and clear, jointly, and how much you wish to use as collateral and what your target credit line is.

Attach a recent brokerage statement and your picture ID (e.g., driver’s license copy) in the locations noted, and Submit to transmit securely to us.

Your application is reviewed by our staff at A. B. Nicholas to ensure that it is complete, and if so, it is forwarded to one of our lending partners at three major brokerage institutions in the U. S. The application is securely downloaded by the licensed institutional advisor and a thorough risk analysis is conducted. The terms are then transmitted to A. B. Nicholas, and the original documents are deleted (purged) and overwritten for client security.

Next, A. B. Nicholas places the terms into an Approved Financing Term Sheet. In that term sheet will be all the key information needed to make an assessment of the loan offer, including line amount, interest rate, approximate cost of financing if the maximum allocation was drawn from the line, and other key information. It also includes some compliance provisions to which the client must agree, including your agreement that we have not provided any securities buy-sell advice or tax advice. The A. B. Nicholas fee, payable after delivery of your line as promised, is also included.

You’ll sign with two clicks via our Adobe/Verisign signing system and both sides will receive a signed copy in their email.

Next, we’ll have your (FINRA/SIPC) licensed lender advisor at our lending bank/brokerage call you directly to discuss your credit line. He’ll answer any remaining questions, discuss the steps, and if you are comfortable with proceeding, your account will be opened at the advisor’s brokerage/bank. He’ll provide you with simple paperwork to permit him to transfer your securities into your new brokerage account at your lending brokerage electronically, institution-to-institution — you don’t need to do anything other than sign — and the securities you designated will populate your new account.

Typically, this stage takes about a week, as the sending institution’s speed determines how soon your securities arrive. But once they do, your loan agreement will be signed and a simple lien is placed on the account in the background. A bank account is then opened with credit up to your maximum line authorization, and you will be free to wire or write checks off the account.

On average, the process takes about 7-8 business days.

Questions? Contact us.


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