A Handy Credit Line for a Range of Applications

This form of financing is typically structured as a credit line and that means flexibility and most importantly borrower control. As borrower, you can draw down as much or as little of the authorized amount as you need, then repay as much of the drawn amount (principal) as you wish, freeing up the credit line for drawing down again. Because these are administered only by licensed U.S. institutions and the securities remain in the borrower's own title and SIPC-insured account, the ABN securities-based credit line provides the twin benefits of borrower-control and asset security. Those in need of this degree of flexibility and access can rest assured they they will have immediate access and deployment when the right investment or financial need comes along and just can't wait. (Interest is not charged until you actually draw your funds, meaning that you can have your credit line in place in advance, but use it only when you need it).

Real estate investors, for example, can take out their credit line just to be ready to move on the next short-deadline property purchase or use it for large multi-property purchases of flip scenarios. Business owners can use as much or as little of their approved securities-based credit line when the need for extra cash suddenly arises. Those with end-of-year debts who need to manage their funds for maximum flexibility and debt reduction can tap their credit line when they need it, and repay when the need is no longer present.

And all that while your securities remain in your own persona SIPC-insured account where you have full 24/7 access just as you currently have with your existing brokerage account and all the rights and privileges thereof.

A handy line of credit against your securities does not incur interest until you choose to draw down some or all of your authorized amount, so there's no interest maintenance until you are ready to use your funds. Individuals who are buying and selling non-stock investments relatively quickly can therefore repay and refill their credit line when they sell their investment, freeing it up for re-tapping later when the next investment opportunity comes along. The process can be repeated again and again, an additional form of financial "insurance" that can stand alone or supplement your other financing programs.

Be sure of having the cash you need: Have your credit line and know in advance your rates and terms to make sure your next financial need can be readily met without any delays or undue paperwork.