Institutional Stock Loan Financing
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)
Fast Funding, Minimal Paperwork.
B. Nicholas LLC
1425 K. St., NW, Suite 350,
Washington, D. C. 20005
Tel: 202.379.4744 • Fax: 202.204.5131
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.
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.)
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)
Browse PDF Info Library
(Copyright © 2013 A. B. Nicholas LLC)
Tags: stock loan,
securities based credit line, stock-secured loan,
SBLOC, stock loan securities, stock margin loan, loan