Securities Based Lending

Connecting You to Liquidity

Connecting You to Liquidity

Our partnered banks provide versatile lines of credit, granting eligible clients convenient access to funds secured by a diverse portfolio of non-retirement investment assets. These services are facilitated through a user-friendly online origination process and a collateral management platform. Additionally, a team of dedicated banking specialists are available to provide support for products and services

Loan Features

Size

Size

Loans are available with a minimum of $75,000 and no maximum limit.

Type

Type

Clients have the flexibility to borrow, repay, and borrow again multiple times within the revolving line of credit.

Term

Term

No specific maturity date is specified, monthly interest payments are required, and the partnered banks retain the option to request repayment of the loan at their discretion.

Pricing

Pricing

The loan pricing is established as a spread over the 1-Month Term SOFR, with the spread determined based on the line amount. Fixed rates are also available. No additional fees.

Eligible Accounts

Eligible Accounts

Account types can encompass individual, joint, trust, LLCs, and partnerships, whether used independently or in combination.

Documents

Documents

No personal financial statements, tax returns or paper applications, are required. Only a statement of the account to be collateralized, verification of identity and documentation to support account ownership may apply.

Collateral

Collateral

Collateral must consist of non-qualified assets, including stocks, bonds, mutual funds, ETFs, or structured notes. The client pledges the collateral via a first lien pledge to the partnered bank, facilitated through a control agreement.

Loan Uses

Life Events

• Real Estate

• Home Renovations

• Tax Obligations

• Family Events 

• Education Costs

Business Needs

• Liquidity/Working Capital

• Business Expansion or Acquisitions

• Start-up/Seed Funding

Securities-based lending is a non-purpose margin loan secured by eligible, marketable securities. It is non-purpose because the proceeds of the line of credit cannot be used to purchase securities. Securities based lending has special risks and is not suitable for all investors. The risk of securities based lending include (i) market flucuations that may cause the value of pledged assets to decline, (ii) a decline in the value of the pledged securities that could result in selling of the securities to maintain equity, and (iii) possible adverse tax consequences as a result of selling securities and (iv) the potential increase in interest rates.