LeverageLineTM for Securities Owners
A fully licensed, FINRA/SIPC wholesale credit line facility custom-designed for the franchise, business-buying, and commercial real estate client seeking low-cost, high-LTV financing against their stock, bond, or mutual fund portfolio.
Finance it Your Way. Put Your Portfolio to Work. Twice.
You’ve probably been through the standard financing process before. You updated your personal financial statement, gathered up five years of tax returns, bank statements and whatever else the banker required. You filled out all the forms, went to the interview, then prayed for good news.
We don’t finance that way; we offer industry leading LeverageLine simplicity instead. We finance using your stocks, bonds, or other securities serving as collateral that stay in your own account – and nobody else’s.
Your LeverageLine financing allows you to put two asset classes to work, not just one. Keep your securities growing for you while you access the lowest interest rates, highest loan-to-value and quickest delivery in the market today to fund your business investment.
But There's More. Much More.
Let’s start with paperwork and qualifying. Your bank will typically ask for evidence of every asset you own as well as your credit report and tax records. That can spell delays, uncertainty, high costs, and lost opportunities. Your transaction is reported to credit bureaus. Your banker decides which investments are “prudent” when determining their offer.
Again, not so with LeverageLine. Here’s what you need to qualify for up to 95% loan-to-value at rates below the best mortgages: Grab a copy of your brokerage statement and apply via a simple, one-page, secure online application. That’s it. You’re approved.
Where’s the catch?
Sorry. No catch.
We Built This... And We're Still Building It.
Back in 1999 there were many options for clients seeking franchise, business, or commercial real estate funding, whether SBA loans or private loans for land development or special pools of credits for franchise buyers. The financial world was still a freewheeling place back then, and just about anything was possible. Some was good; some wasn’t.
Securities finance was part of that era too. There were private loan programs from unlicensed third-party lenders. There were unsupervised lending programs within larger firms using contracts loaded with small print and “gotcha” clauses that allowed unexpected rate increases. A prospective franchisee or an investor interested in a prime piece of real estate was often taking a big chance back then, and not everyone was surprised when the financial crisis of 2008 began taking down lenders and clients alike.
A. B. Nicholas reeled within this barren new financial landscape too, but while thus affected, we did not wait for solutions to find us. Rather, we went to work to find suitable alternatives ourselves, beginning with our clients’ feedback. So we asked our clients this key question: What would you want to see in a securities-based credit line to make it an ideal, attractive financing alternative for your business needs?
From Ideas...to You
LeverageLine's Client-Requested Features
Your LeverageLine comes pre-packed with many unique features that sets this financing programs apart from any other securities-based credit line. It’s built from the ground up with your input, and we are adding new features regularly.
- No transfer of title of securities to lender — no ownership change.
- Securities remain in your solely-owned brokerage account at UBS at all times.
- Your account at your lending brokerage is identical to any modern US account.
- You can integrate your existing advisor to assist with trades if you wish.
- You can trade in your account as always (with minor limitations).
- You pay interest only on what you draws, with no other lender-side fee.
- Rate is a discounted base plus 30-day LIBOR
- Our clients receive preferred service via A. B. Nicholas' institutional partnerships.
- You have 24/7 online access, reports on demand, access to your advisor for free.
- You can access your funds in eight business days on average; draw what you want/need.
- You will receive a checkbook and can wire at no cost via phone.
- You are building a financial relationship with a top-tier, fully licensed SIPC/FINRA brokerage/banking firm.
- Your advisor is a fully licensed Certified Financial Planner/RIA and FINRA member.
- Your LeverageLine quote is best in market.
- Capital gains taxes occur with a sale/ownership change; neither occur with LeverageLine.
Client Testimonials
