We Outbid and Outperform
Our LeverageLine program is a full-featured credit line that uses your securities portfolio as collateral. Engineered originally by A. B. Nicholas for the franchise and business acquisition client, the program has evolved into a perfect tool for a wide range of uses, from payment of tax liabilities to real estate investors and those who seek lending with the best rates and terms available.
We believe we offer a number of unique advantages over standard brokerage margin loans and standard retail securities portfolio credit lines (stock-based loans) for these reasons:
- Stock loan fee structures are a dramatically better in most cases, over standard retail brokerages.
- Our interest rates are designed to outbid. We aim to match or exceed the best mortgage rates.
- Ours is a true Securities-based Line of Credit (SBLOC), so your securities are averaged together.
- Interest-only repayment required; defer ALL payments if you leave room on your line.
- A revolving line of low-cost credit; no balloon payments or set maturity dates.
- Credit score not a factor in approval.*
- Speedy delivery with same-day pre-approval in most cases.
- A simple background lien on your assets to guarantee lender’s interest.
- Simple asset-based financing; not a margin loan.
- No mandatory lender-side account management fees.
- No interest charged until you actually draw from the line.
- No lender-side mandatory fees;
- No up-front fees: nominal one-time A. B. Nicholas stock loan fee post loan delivery.
- No sale of securities to fund your line of credit.
- No hidden fees or costs, or restrictions.
- Online access and freedom to trade in the account.
- Option to defer interest payments to preserve cash flow.
- Ideal for franchise buyers; pay back principal after enterprise gets off the ground.
- Household-name licensed public lending institution.
- Multi-licensed FINRA-member lender advisor w/ 20+ years experience.
- Securities in portfolio averaged to stabilize collateral.
- Major institution financial relationship opened for future conventional business finance.*But no bankruptcies/foreclosures prior 3 yrs
Keep Your Collateral
Our program does not require you to transfer title or ownership to your lender before you are provided with your funding, although you do need your account and securities to be housed at your lending institution. All processing, including transfer to your new account is handled for you, with your knowledge and permission, by your licensed lender advisor at your lending institution, a “household name” top-tier SIPC/FINRA public U. S. institution that has agreed to provide the LeverageLine format of securities-based loan.
Same As Your Current Brokerage Account
Your new account is identical to your old account, except you’ll have another major institution listed at the top of your brokerage statement. You have the same online access, same control, same rights to trade. The only difference? You’ll have access to the best credit line in the industry.
A Simple Asset-Style Stock Loan
If you do choose to proceed with your LeverageLine then the last step is simply to sign your credit line agreement at your lender. Once signed, the lending institution creates your checking account via their banking division, and your line is ready for wire transfer or drawdown via checkbook on the spot.
Interest Only on What You Draw
Until you choose to draw from your line you owe nothing to your lender; in fact, many of our clients simply like to keep this low-cost, dependable line in their “back pocket” in case of future need. No mandatory lender side fees, either. Zero. If all you want is your LeverageLine, it’s yours, and you pay interest only on what you draw. Everything else is optional (such as act management, but even then, since you came through A. B. Nicholas, you will in most cases avail a discount.)
A True Credit Line with No Change of Ownership
The key distinction between the “nonrecourse” stock loans of past years and our LeverageLine program is that there is absolutely no sale of your securities as a condition to funding, nor transfer of ownership or title. Thus, if you were weighing whether to sell stocks that you purchased at a much lower price originally (low basis), and are perhaps facing significant capital gains taxes if you were to sell them, LeverageLine solves the problem.
Why not get a free, no-obligation term sheet today? Let us show you what you qualify for in a pre-approved financing offer. Grab a brokerage statement and ID and go to our secure form at abnicholas.com/quote and we’ll have your term sheet today if completed by 2PM.
Keywords: risk managementÂ interest rate dividend payments pay interest loans secured short sellers brokerage firm securities including short sale securities lending agreement hedge fund borrow money short selling long term stock exchange traded federal reserve number of shares stock loan fee