The Application & Funding Process

We Do the Heavy Lifting for You

Your LeverageLine was designed for ease and simplicity: your licensed lending institution does all the work.

Your SIPC-insured account is opened for you and it is yours alone, not jointly owned with the lender. Your licensed lender adviser at your lending institution, with your permission, moves the collateral securities you specify into your account — no different from you deciding to change your brokerage on your own, basically, except that your lender does all the work for you to speed things along.

After signing your loan agreement (which essentially mirrors your term sheet), a standard background lien is placed on your account by the lending brokerage’s own banking division. Your line is then open and ready for drawdown, and you may draw as much or as little as you wish, when you wish.

There is never any obligation to proceed during any of these steps. You do not owe our nominal consulting fee to ABN until your funds are delivered as promised.*

The steps in list form:

  1. Fill out our secure Application/Quote Request form at https://abnicholas.com/quote.
  2. Attach recent brokerage statement and matching ID (passport, driver’s license).
  3. ABN generates terms after conferring with one or more of our brokerage/banking partners.
  4. ABN creates and delivers term sheet via our secure online system, allowing client to sign with two clicks. File copy to agent at same time. Client can call us at 202.379.4744 ext. 1 with any questions.
  5. Client signs with two clicks and receives signed digital copy, fulfilling minimum compliance requirements set by lending institution. This locks in pre-approved offer without obligating client.
  6. Client receives Welcome Email from licensed lender adviser. This includes adviser’s full contact information, FINRA info for background check, a copy of the two-page account-opening form for reference, and a brief welcome message. Introductory call with adviser and client is arranged by ABN.
  7. Call conducted. Call covers any remaining questions, use of funds, plan to repay loan, and any other subject that the client may wish to go over. If client chooses to proceed, he/she will send in the account opening document by fax and account will be opened same day.
  8. Client will specify securities he/she wants to use to secure his/her line of credit. Lending brokerage will handle transfer of those assets to client’s new account at lending brokerage.
  9. Shares arrive (at this point client has a simple, standard brokerage account, with reports on demand, online access, etc.)
  10. Loan agreement signed, lien placed on account, cash banking account opened with funds for drawing. No charge until client give me
  11. Revolving line of credit, so client chooses when to close. No maintenance fees or costs until/unless client actually draws funds, and then interest only on what has been drawn, due in 30 days.

* Clients who would like to avail a fee discount may opt to pay in advance. 

A Credit Line Built for Speed and Security

We have picked our partners with great car and will not accept any unnecessary delays f — our clients expect nothing less — so every LeverageLine stock loan | credit line applicant moves through our system as quickly as possible from start to finish. Funding in 7-8 days is standard.

Never a Sale of Your Securities

Your securities are never sold to fund your line of credit*. Your line of credit is from a fully regulated  multi-billion dollar institution directly — a major public U. S. financial firm, disclosed on your term sheet, via a multiply-licensed FINRA member senior lender advisors with no less than 15 years of experience.

You have all the usual features of any modern U. S. brokerage account because that is exactly what your account is; for all intents and purposes, an account identical to the account you now have only with a different major brokerage name at the top of your statement. Online access, reports on demand, and freedom to trade in your account just as you do now — are all standard. Support and advice from your adviser at no charge — also standard. Only the name of your brokerage will change; and you’ll have the most competitive stock loan | credit line financing in the market today.

* You as client have a right to sell your shares, of course, and as with any asset loan if you default and make no repayment arrangements the lender reserves the right to force a sale of enough shares to make up what is owed. 

So grab a copy of your brokerage statement and ID and get your no-obligation LeverageLine quote today! Worst case, you can find out what we can offer you, since credit is not used to determine your offer. There’s no downside to learning more, and a whole lot of upside potential for your financial needs.

Contact Us

All Inquiries Welcome
1629 K Street NW, Suite 300, Washington, DC 20006 Tel: 202.379.4744
© 2017 A. B. Nicholas All Rights Reserved PrivacyDisclaimerCopyright

Securities based lending may not be suitable for all securities owners. A. B. Nicholas urges all clients to discuss these risks with their licensed lender advisor should they proceed with their LeverageLine. Any activity involving securities, including borrowing, by definition involves certain risks and if the market value of your pledged securities declines to the point that you must add cash or assets, , for example, you may be required to pay down your line of credit, restructure your holdings into more stable securities (which can involve a sale), or both in order to maintain your loan. Although both A. B. Nicholas and each ABN lending partner advisor make maximum effort to ensure that acceptably good quality securities are accepted so as to minimize risk to the extent possible, we cannot guarantee any specific outcome of any securities performance and by proceeding you are acknowledging this. All lending, management and processing is handled solely by fully licensed U. S.-based FINRA/SIPC institutions (and their FDIC-member banking divisions) with which A. B. Nicholas has partnered for this custom program. Please review our disclaimer prior to proceeding. Our privacy policy is located here.