Stock Loan Credit Lines and Securities Finance
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A Financing Scenario

Imagine a creative financing scenario that would allow your backer or investor to leave his cash alone while leveraging his stocks or other securities for a low-interest, institutionally managed credit line with the security of SIPC-insured accounts and the knowledge that his/her securities will not be sold?

That's exactly what we offer here at ABN. As long as the very low interest payments are maintained monthly - and they may be drawn from the line for easy of financing - cash can be drawn and assigned to your film, construction, project management, or financial restructuring project without having to commit all of your investor's funds. That's having your cake and eating it too: Your investor's securities keep working for him/her, but he is investing as he goes. And there is no sale of the underlying stock asset, which are accessible 24/7 online or in person through the top-tier institutional partner we've marshaled for your credit.

These are open-ended credit lines with no maturity date, and that means that as long as the interest is paid and the value of the account is equal to or greater than the amount of credit drawn, the principal is not due. You can draw as little or as much of your credit allocation as you like, and interest is charged only on what has been drawn. When you or your investor pays the loan off, they may do so at any time, without any penalty. As a low-doc loan, there will be no massive paperwork or credit checks either. If you own the asset and can prove it with a brokerage statement and your picture ID, you have credit.

When your project is profitable, repay the principal (amount drawn). Your credit line is now "refilled" and you can either terminate it without penalty or keep it alive for further projects by simply keeping to the very reasonable terms outlined here; interest paid and value maintained. If your account is paid, you will owe no interest since no principal (drawdown) remains outstanding, but your line will still be ready and available for whenever you wish to restart.

View our eligibility criteria here. Then drop us a line at support@abnicholas.com or call (202) 379-4474 today. We're ready to assist.

Stock loan financing with no transfer of title, institutional management

Copyright © 2011 A. B. Nicholas & Co.
Please read our disclaimer before proceeding with any financing
through A. B. Nicholas & Co.

 

  • Quotes are for illustration only, and should not be considered final.
  • Final rates and terms to be determine solely by the
    licensed SIPC-member institution with which we've partnered for these programs.
  • Please note also that no loan program on this
    page may be treated as a tax shelter or tax avoidance program under any circumstances.
  • Please consult with a licensed tax advisor and/or the IRS website
    (www.IRS.gov) for precise and proper treatment of all loan proceeds.
  • No shares are sold through this program to fund any loan offered herein. Proceeds may not be used to purchase marginable securities.
  • No transfer-of-title loans are offered by ABN. Proceeding with this site presumes you have read and agreed with the above.

Copyright © 2011, A. B. Nicholas & Co.
support@abnicholas.com
Phone: 1.202.379.5744
Fax: 1.202.204.5131

Tags: LTV, loan-to-value, release rates, Stock loan, stock-secured loan, securities finance, securities-based loan, SBLOC,
stock margin loan, leveraged equities, margin stock loan