We Built a Better Stock Secured Loan.
Stock secured loan services that stand out from standard retail securities-based credit line programs require a lot of work, vision and commitment, but we had little choice back in 2009. With the Great Recession raging, conventional lending for our franchise and commercial real estate clients became nearly impossible. Our survival as a company, like so many others, depended on finding solutions regardless of circumstances. We knew our clients, so we knew our new financing tool would need:
- No mandatory lender fees or services other than a credit line
- No high interest, balloon payments, or “small print”
- Interest only repayment, no maturity date
- A revolving line of credit, with freedom to defer payments.
After hundreds of hours of conversations with bankers, brokerages, and financial advisors on everything from collateral requirements to stock loan fee issues, we were able to finally unveil our LeverageLine stock secured loan program customized to our standard franchise client’s needs.
Our clients did not want to sell their stocks and incur an immediate capital gains tax liability by doing so. Our clients wanted flexibility. We deliver all of these requirements and to our knowledge, are the only company to do so with full management via one of three major institutions.
Low-Doc, Fast, Licensed
LeverageLine is a credit line using your securities portfolio as collateral. Your account and securities will reside at one of three major FINRA/SIPC U. S. brokerage/bank institutions with which we’ve partnered. As an asset-based form of financing, your lender will place a simple lien on your securities portfolio and then open your line. There is absolutely no sale of securities required to fund your line of credit. You retain full control at all times, and full access just as with any modern brokerage account.
A special feature from A. B. Nicholas is that you can still trade in you account even as it guarantees your line, provided you don’t greatly diminish the value of the collateral securities. Take nothing from the line and owe nothing to your lender, since your only mandatory costs with LeverageLine are interest on what you yourself have chosen to draw from your line (and you can take as much or as little as you like up to your maximum line authorization, at the same interest rate, regardless of size). Some key features of LeverageLine include:
- Freedom to defer interest payments to preserve cash flow
- Wholesale interest rates to minimize overall financing cost
- Speedy delivery of funds so as to have cash on demand
- Pre-approval funding letters if needed to close, within 24 hours of application
- Service: Lenders who do their utmost to partner in our clients’ success
- No mandatory lender-side fees; all extras optional
- Freedom to trade in your account during loan
If you happen to be a business or a franchise client, you’l get the added bonus of beginning a financial relationship with a major U. S. brokerage/banking institution “through the back door”, i.e., via LeverageLine as your entrance point, so that in the future, if you wish, you may move to the front of the priority line for conventional business financing later. Many of our clients have purchased their second and third franchise this way with conventional business loans after beginning with their securities-based asset loan.
We built a better stock-secured loan. Why? Because we had to!
Please call 202.379.4744 or write us today to get started or to learn more.