Put Your Portfolio to Work… Twice
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 knew our clients, so we knew our new financing tool would need more than the usual.
We call our program LeverageLine — a stock secured loan program with greater flexibility and many features requested by our clients.
Replace Your High-Interest Stock Loan with a LeverageLine
LeverageLine is a credit line that is collateralized by your securities portfolio. You retain all of the ownership, value, freedom to trade, and all other benefits and rights that you currently have. There is no change there. Unlike some programs where you must give your securities to the lending institution first, LeverageLine uses a simple background lien on the portfolio to open your line of credit.
Our clients can obtain their line against their portfolio, or if you have an existing stock secured loan, we can pay it off and roll your high-interest stock loan into a LeverageLine. There is no special lender cost to do so.
Your account and securities will reside at one ABN’s licensed partner brokerages (UBS, Pershing, Ameritrade) under our partner advisor at that lending firm, who has agreed to offer the discounts and other benefits, in advance, to our clients. The securities will be deposited in your new account, with your permission, by your lending institution advisor so you need not physically go down to your current brokerage.
LeverageLine is no different in principle than any 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, the amount of which is carefully determined by your institution’s risk analysis group — terms reflected on your term sheet which we’ll deliver at the outset to you before you decide whether you want to proceed.
You retain full control at all times, and have full access just as with any modern brokerage account. The only difference is you’ll have a great line of credit ready to draw from at rates and terms you’ll know in advance.
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.
Other key features of LeverageLine are:
- Freedom to defer interest payments to preserve cash flow – useful for franchise owners
- Wholesale interest rates to minimize overall financing cost – the best in the business
- Speedy delivery of funds so as to have cash quickly on demand – a low-doc loan
- Pre-approved funding letters if needed to close, on lender’s stationary
- Service and commitment: Our hand-picked lenders are committed to our clients’ success
- No mandatory lender-side fees; all extras optional, and you get them at a discount
- 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” so to speak, i.e., via LeverageLine as your entrance point so that in the future you may move to the front of the 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.
So we built a much 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. Or click below to learn more.
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