Lowest Wholesale Interest Rates in the Market
We at A. B. Nicholas started many years ago with the premise that our clients needed something better than what the retail securities-based credit line market offered, so we studied the competition first. What we found was that without exception, the market offered even pre-existing clients higher rates, lower loan-to-value, and no specific expertise in the fields that mattered most to our clients — commercial real estate investing, business acquisition, and franchise licensing. In fact, we found a market where the securities-based credit line was often handled in a profit-and-fees driven manner, not with the client’s financial objectives primarily in mind. It presented us with an opportunity.
We sought better.
LeverageLine is faster, less expensive and requires far less documentation, except for very complex cases (which this program can handle too). It offers top-notch security, expert institutional advisers with sector experience in the specific target market fields noted above, and high-quality, professional support for all of our clients as they grow their businesses or real estate investments in the future — again, normally at no charge.
Most of all, when you obtain a LeverageLine you will be receiving lending services, which is why you came to us, not mandatory investment services. You certainly can opt for full-scale investment management with our carefully selected advisers at our institutional lending partners — and they are very good at what they do, plus you’ll get their services at an A. B. Nicholas discount over market — but that is up to you.
There are no mandatory “account management fees” or “service fees” or other hidden lender-side fees for services you may not want or need as a borrower. Also, with our LeverageLine securities-based credit line program you will not get the “hard sell” to adopt added costly services if you do not want them. What you will get is the lowest-rate, highest LTV securities-based credit line the market offers. Anything else is your choice alone.
Perhaps you are thinking that our LeverageLine program is just a “glorified margin loan”. We assure you: it is not.
For example, a margin loan will almost always have rates as much up to twice as much as a LeverageLine. Your stock margin loan is standard with 50% cap on loan-to-value. It always comes with a very tight reserve maintenance policy as well. Standard margin loans operate on single securities, not for a portfolio or basket of securities where overall value averaged together as with LeverageLine.
With a margin loan, a fall in that single stock can quickly put your collateral into an insufficient status; if so, that would require you to shore up the value or sell shares shares immediately.
With our LeverageLine, you must maintain value too of course, but the value of your collateral is an average of all the stocks, bonds and/or mutual funds in your securities portfolio, so if there is a drop in value of one stock, it will be less likely to affect the overall collateral value significantly. For example, all things being equal, a drop in one stock could be offset by a rise in another in the portfolio, or the drop so averaged could be “absorbed” vis-a-vis the overall portfolio value.
The licensed lending institutions and advisers we have chosen to work with A. B. Nicholas are required to adopt a client-friendly policy where they strive always, to the extent possible, to ensure that all of your questions are answered in full, and that you are informed and in control at all times.
This isn’t just any stock secured loan program. LeverageLine has been customized for its core markets . It includes features that make it ideal for the commercial real estate investors too. These include
- Freedom to defer interest payments to preserve cash flow;
- Wholesale interest rates to minimize your overall cost of financing.
- Speedy delivery of funds to ensure that our clients can take advantage of opportunities quickly before they disappear.
- Pre-approval funding letters if needed to help facilitate deals;
- A lender policy of doing their utmost to become an active partner in each client’s success
- No mandatory account management or other fees unless you opt for extra services
- Freedom to trade in your account as long as overall portfolio value is not signficantly decreased.
Mostly, you’re getting a partner in your future business or commercial real estate growth. Or your overall financial needs looking forward, be they college tuition or an old tax liability. You are beginning with a very competitive, low-cost, asset-based, stock secured loan (LeverageLine) as an entrance point into what could, if you wish, become a long-term financial relationship with a major public financial institution.
So again… Why LeverageLine? Because it’s a powerful, custom financial tool loaded with features expressly designed for clients like you, not normally available on a walk-in basis.
Call us today: 202.379.4744; Or contact us to ask more questions by mail form. We’re always here to help!