The A. B. Nicholas Story

Back in 1998 I was working for the U. S. Department of Commerce’s International Trade Administration in Washington D. C. as a Senior Writer/Editor. At the outset I thought I had the best job in the world, steady, practically tenured, in the heart of the nation’s capital. My job was to help convey the narrative that would assist our American companies in exporting goods and services, particularly companies not already doing so. I loved it. Felt I was doing something good for the country and our economy too.

I’d go on trade missions set up by the agency in China, Brazil — what are called “BRICs” now but back then were called “Big Emerging Markets” or BEMs. There was much excitement and hope among those companies that went on these government-subsidized trade missions. Our products were as good or better in many cases than the competition.

But very little success was recorded. I wanted to know why. Following up on attendees a year later, the response I heard the most was: insufficient financial resources. Not enough to pay for all the setup costs needed to navigate the labyrinth of foreign government red tape and other costs.

“We need more cash to pay all the documentation and licensing fees needed to enter the Brazilian market”.

“We have the best pinion arc sleeve in the world, but cannot get it into the China market due to lack of capital. Export loans from Ex-Im Bank are simply insufficient”.

“Too risky given our limited capital reserves.”

I started doing some further research, beginning with a study of the exporters’ assets. Most everything you’d expect was already spoken for. Even government assistance didn’t get it done.

I’m Dan Stafford, founding partner here at A. B. Nicholas, and by process of elimination, I discovered that many of these individuals and companies held substantial securities – stocks in their own listed companies, bonds, mutual funds, and investment funds dedicated to securities. These items always made it to the financing documentation along with tax records and so forth, but no one looked at them as export-support assets that could be lent against, apparently.

So I thought: What if you could leverage these securities assets safely and inexpensively for low-cost funding to fill the gap left by government financing and individual financing for our exporters? Can it be done? Would it help? Would that answer the problem and be beneficial to the U. S. export community?

After much difficulty and many skeptical financial institutions, plus a few foolish wrong turns as a newbie learning a completely different field, I decided to take the plunge. I took the names of my kids — Abby and Nicholas, the best omens I could think of — and formed A. B. Nicholas LLC in 2010. We had in the beginning but one licensed advisor — at Morgan Stanley at the time, a real estate finance whiz who had been looking for alternatives during the recession to fund his clients. We convinced him to try our LeverageLine model of securities financing. He agreed.

It worked. Our lender advisor agreed to remove all mandatory fees, provide wholesale rate loans, and reduce any optional fees (such as full-time account management) to about half the norm. Today we have the lowest-cost securities-based credit line in the market not just for exporters, but also for paying off past tax liabilities, business acquisition, real estate investment, franchise investment, or college expenses. Some like to just keep a LeverageLine in their back pocket, ready to use if a quick need arose.

LeverageLine was designed to be an inexpensive, quick, secure means to draw credit against your stock portfolio. We do the work; you get an inexpensive line ready to use when you need it, with no maturity date and the best loan-to-value in the market hands down. We use fully licensed advisors and account managers and SIPC/FINRA accredited major U. S. institutions only. Our clients do not transfer ownership to the lender as a condition for funding, ever. LeverageLine you can now obtain a free loan quote here and now and see if our services meet your needs.

And if you happen to be selling a commercial building over $2M in value? You can probably sell much faster if you accept popular tax-deferred UPREITs as payment then turn around and use those same UPREITs for a line of credit. (More here at OPLIne UPREIT Finance).

Even if you like your current brokerage or advisor, bring his offer here and we’ll give you our quote too. We’ll beat all comers. Term sheets are delivered the same day in most cases.

Please Apply Here or call 202.379.4744 to go over your offer.

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