Stock Loan Financing | Securities Based Loans

Stock loan securities finance consultants

Stock loan or securities credit line financing should offer only licensed institutional management; no transfer of title or ownership to your lender in order to fund; and competitive, low interest rates. Shares should always remain in your own, solely owned SIPC-insured account.* This securities-based credit line should be a revolving line of credit that you can use and reuse as often as necessary.

This financing should allow use of a wide variety of eligible stocks and other securities, including Rule 144 restricted securities and foreign securities. Read more about foreign securities here.

We at A. B. Nicholas have been involved in the stock loan business in one way or another since 1999 and the end product is what we call LeverageLine™, a program with a simple premise: Your securities belong to you and no one else. We offer the most competitive securities-based credit line program in the market with the greatest flexibility. We work only with fully licensed lender advisors and top-tier SIPC/FDIC-member institutions. We believe in an intelligent, solution-oriented approach to each situation so as to ensure the very best possible financing in today's market.

LeverageLine is a quick-closing securities-based credit line solution that allows you to avoid selling your securities to obtain funds, allows you to retain full and actual ownership (not "beneficial" or "contractual" ownership) and even ensures your right to trade the securities while you leverage them from the safety of your own, solely owned brokerage account at the top-tier fully licensed and regulated lending institution that administers this program.

We also offer a licensed, responsible stock block purchase program that we call BlockBuy™ for those interested in selling their foreign stock at a negotiated discount.

Not a Margin Loan. If your stocks fall in value, you'll not have the rug pulled out from under you. A liberal call policy, plus up to two weeks to cure and the option of restructuring your holdings into less volatile securities are just two reasons why no ABN client has ever had a margin call with this program. And let's not forget an LTV that is beyond the standard margin loan's 50% (LeverageLines go all the way up to 98% for the least volatile securities, like T-bills). Here's a flexible financing tool that wins out over margin loans hand down. (Read more about eligible securities here.)

Conservative. No one should ever allow transfer of ownership of their securities to an unlicensed, private lender in exchange for "beneficial ownership", yet sadly companies that offer shaky, private "nonrecourse stock loans" still exist today despite warnings like this from respected organizations like FINRA. These stock loan programs require that borrowers to contractually permit the unlicensed lender to sell all of their shares (something the client could do himself!) while delivering a percentage of the sale proceeds back to the client as his "loan" and pocketing the difference. They offered no publicly available, audited financial statements; no verifiable independent cash reserves; and no licensing or other relevant certification to ensure the safe return of the client's shares.

But today's informed investors rightly demand a stock-secured loan or credit line program that is the diametric opposite: financing where the securities are not transferred into an unregulated private party's control but instead remain truly in the client's own title and account at a fully licensed and transparent U.S. lending institution with lender-advisors who are fully licensed and experienced, all members of FINRA in good standing.

You won't find anything transparency at A. B. Nicholas. When you undertake an ABN LeverageLine credit line, your brokerage account is with a licensed expert within a 100+ year-old, fully regulated U.S. investment banking and brokerage firm that brings an unassailable reputation to every transaction. Your ABN-sourced line comes with the lowest rates and costs in the market and many flexible features that add up to the most client-friendly program of its kind. (Top)

Clarity. Our clients said they wanted to fully understand their financing well in advance, with no surprises. We take the time to make sure that you understand how LeverageLine funding works. We don't want your business unless you are both comfortable and satisfied.

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Institutional Stock Loan Financing
No Title Transfer | SIPC-Member Managed
Wholesale Rates | Custom Terms

FEATURES:

No Transfer of Title or Sale of Securities.
No gibberish here about "beneficial ownership" you may have heard elsewhere. Your securities are yours and stay that way, plain and simple, just as they are now and have always been. They remain in your own solely-owned account and title at your SIPC/FDIC-member lender, a well-known FINRA-member U. S. brokerage firm, even as they secure your financing. A simple lender lien on your account ensures repayment.

Lowest Rates in the Market.
Rates often lower than the best mortgage rates which mean low funding costs for you. (See more on our rates here). Even in the unlikely event that you find a better rate, you need only show a valid offer in writing and we'll beat it. (Top)

No Maturity Dates in a Revolving Line.
Any reason why you would want to be forced to pay principal and interest, or a balloon at the end? You pay interest monthly and any principal you wish, which simply refills your line for future cash drawdowns later if you wish. Looking for a fixed-rate term loan anyway? No problem. Convert your variable rate line to a fixed-rate term loan whenever you like. Even then we have built in great features for our clients, for although technically containing a maturity date, you get the comfort of knowing that your financing reverts to a variable rate credit line at loan maturity if for any reason you can't repay the principal when due. (Top)

No Sale of Your Securities to Fund.
Ever hear about "nonrecourse stock loans", where lenders sell some or all of your securities from the start so that they can give some of the proceeds back to you as your "loan"? With LeverageLine your securities aren't sold to fund your financing, because you are working with a major investment bank/brokerage institution with which ABN has partnered, a fully regulated household-name U.S. institution licensed in all fifty states with its own substantial capital reserves. Since "no sale" means exactly that, you can even trade in your account with reasonable value maintenance while your account guarantees your credit line.** (Top)

Top-Tier, Licensed Lender Advisors.
Your personal lender advisor is a FINRA-member Certified Financial Planner in good standing. Your brokerage account is SIPC insured; your cash account is FDIC insured. Your advisor's institution, of which he is an employee, provides the audited financials and the annual reports that you would expect of any publicly traded, fully regulated U. S. financial firm. (Top)

Client-Friendly (To a Fault!)
Yep; we wanted nothing less for our clients than the best. Your ABN securities loan comes with no prepayment penalties; freedom to trade in your account; professional lender-side advisor support at no additional cost; optional full account management services at best-client reduced rates; relationship-oriented personalized service with a long-term view; business-friendly "red carpet treatment'" services including easier access to conventional business credit and even a service to pay off any existing margin or other loans you may have on your securities beforehand. (Top)

A Conservative Approach.
ABN maintains an old-school small-firm respect for our clients, regardless of credit line size or individual net worth. We strive to correctly represent our licensed lender partners' programs at all times, and make regular updates as they occur. Our goal: Clients who will recommend our service to others, which for us is the very best compensation there is. (Top)

Easy Application Process.
Our secure online "Get Quote" button above leads you to begin a simple one-page process that allows you to obtain at term sheet and quote in one business day by simply attaching a recent brokerage statement and ID. Signing your no-obligation term sheet is handled using our Verisign-platform digital system with just a few clicks. (Top)

Not Compensated by Any Lender.
Neither ABN nor any ABN Affiliate is ever compensated by any lender, brokerage, bank, or other institution with which we work, for these securities loan services. That includes no bonuses, no lender-paid referral fees; nothing. It also means we have no incentive to refer our clients into any particular program. We therefore work 100% for you, our client, as your support.

Fast Funding, Minimal Paperwork.
Fast lump-sum funding thanks to a very "light/no-doc" process where your securities are key and credit is neither required nor reported. Funds for non-corporate signatories are typically available within 14 days. No waiting months, tying up multiple assets, or enduring endless qualifying requirements with LeverageLine. (Top)

A. B. Nicholas LLC
1425 K. St., NW, Suite 350,
Washington, D. C. 20005
Tel: 202.379.4744 • Fax: 202.204.5131

Join our OASIS Link-based Affiliation Program

Value. Highest Loan-to-Value in the Market for Comparable Finance. Tap your securities for up to 98% of current value, depending on assessed volatility and risk. (Lower volatility=higher LTV). All this spells maximum funds without the typical bank/SBA delays and red tape.

Best of Both. No need to trade superior account security for superior rates and terms. With A. B. Nicholas, you'll get both while sacrificing neither.

Borrower-requested.
This stock loan program allows you to trade in your account even while your securities back up your line. You'll get online access and statements on demand, too, plus the security of a major U.S. investment bank/brokerage licensed in all 50 U. S states. (Top)

Fast. Very fast. Enjoy the benefits of a quick-closing (two weeks on average) credit line against your portfolio with minimal red tape and paperwork. Whether you have $150K or $15M in securities (or cash you'd like to restructure into eligible securities), we'll deliver a quote that meets your financing objectives.

You pay no interest until you actually use your line, making LeverageLine a popular tool for those who could use a low-interest credit line without the typical red tape of conventional bank or SBA financing (compare here).

Easy, Accessible. Simply apply online here with a copy of a recent brokerage statement and a valid photo ID to obtain a term sheet. Digitally sign the term sheet, there is no obligation incurred in doing so, and if you choose to proceed, we will introduce you to your licensed advisor at your institutional lender. (Top)

Your account will then be opened, your securities placed in your new solely-owned brokerage account (with 24/7 online access) and your loan agreement provided to you. Your account will typically be open within 72 hours of signing your credit line agreement, your cash accessible by wire, check or debit card.

If you are interested in our BlockBuy program, proceed to our Application page and we'll turn around your offer in one business day if eligible.

Biz Financing Too. Looking for an overall business or franchise funding package? Your LeverageLine can anchor a financial relationship with your institutional lender that is unbeatable. Your lender will even help you build rock-solid Dun & Bradstreet and bank business credit for your growing enterprise. (Inquire)

Tradition. We're a small business with big-firm know-how when it comes to the stock loan and securities financing industry, not an impersonal megacorp where your significance as a client is gauged by the size of your wallet. We've learned what to do as well as what not to do. And we're specialists in this field: Securities-based financing is all we do, and that's exactly why we are recognized as the national leader in this market.

Like your advisor? Keep him! Have a broker or advisor with whom you'd like to keep working? We can help. Your lender advisor will take a junior position if you like so your advisor can still work with you. (Some restrictions may apply; inquire to learn more.)

No stocks? No problem.
Why not put two asset classes to work, your stocks and whatever cash investment you choose to make with your LeverageLine proceeds? Your licensed lender advisor (who is also a Certified Financial Planning professional) will be happy to assist. This can be an excellent way to ensure that your LeverageLine is tailored exactly to your specific needs.

Ready to apply? Use the "Get Quote" button above to apply for your LeverageLine and we'll deliver a Term Sheet within 1 business day. Or proceed to our BlockBuy page to apply for your stock block purchase quote. (Top)

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ABN-sourced credit lines are provided solely through licensed institutions which are members in good standing of the following organizations:*

*SIPC does not insure the underlying value of the financial asset it protects. In other words, investors always still bear the risk of the market. SIPC does provide a form of insurance covering actions by broker dealers pursuant to a client's account. Please visit the Securities Investor Protection Corporation website here for precise details. **Your lender, like any lender, could of course require the sale of enough of your shares to make themselves whole in the event that you were to walk away from repayment of your line or refused to make repayment arrangements after drawing from your line. There is no obligation to proceed with any financing offered through ABN should you apply. All clients or prospective clients are asked to read our full Disclaimer before proceeding with any financing offered through this site; please do not proceed to use this site unless you have read and agreed to the disclosures provided in the disclaimer. ABN does not offer any form of securities buy-sell, insurance, or tax advice .ABN is not a mortgage lender and does not offer any form of mortgage. Please consult with a licensed professional for questions regarding taxes, financial planning, mortgages, or insurance, or the appropriateness of securities purchasing or selling for your specific circumstances. Clients seeking any form of financing are expected to comply with all applicable federal or state tax and/or reporting requirements. *The SIPC and FINRA logos used on the home page e are the exclusive property of the respective organizations and are used for illustrative purposes only. ABN is not a member of FINRA or the SIPC, although the client's licensed lender is a member of these organizations and is licensed in all fifty states for these financial activities. For cases where brokerage statement is delivered, account opened, and shares are in electronic format already, two weeks to delivery of financing is customary. Processing factors including conversion of certificates to electronic format by lending institution or prior liens (e.g., tax or divorce liens) which may impact timing to fund. All correspondence and documentation complies with the A. B. Nicholas privacy policy. Copyright © 2013, A. B. Nicholas LLC. All rights reserved

Tags: stock loan, securities based credit line, stock-secured loan, SBLOC, stock loan securities, stock margin loan, loan stock,
stock secured loan, securities loan, loan against stock, securities finance, stock margin loan, margin stock loan

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This financing should allow use of a wide variety of eligible stocks and other securities, including Rule 144 restricted securities and foreign securities. Read more about foreign securities here.

Institutional Stock Loan Financing No Title Transfer | SIPC-Member Managed Wholesale Rates | Custom Terms

Institutional Stock Loan Financing
No Title Transfer | SIPC-Member Managed
Wholesale Rates | Custom Terms