Our Collateral Lending Program offers a convenient way to finance almost any need - without having to liquidate your security holdings. If your account is eligible, your existing portfolio can be used to finance a variety of goals and needs.1 These may include:
Short-term cash flow gaps
Business expenses, including day-to-day or longer-term capital expenditures, or interest in a business partnership
Real estate and luxury purchases
Liquidity for estate planning
Refinancing high-interest-rate debt or credit cards
See below for additional details on Collateral Lending Program risks and advantages.
Benefits of the program
LiquidityYour loan will use your portfolio as collateral, without requiring you to sell your positions.
SimplicityLess documentation is required compared with traditional lending products.
How the Collateral Lending Program works
How to qualify for the Collateral Lending Program
In order to qualify for a loan or line of credit, you'll need sufficient eligible collateral within your portfolio.
Additionally, not all securities or account types are eligible to participate in this program, including, but not limited to, retirement accounts. Eligible account types may include individual and joint accounts, family offices and related structures, and personal holding structures, such as corporations, LLCs, LPs, and Trusts. For-profit operating entities and not-for-profit accounts are not eligible.
Additional program conditions
Here are some additional details and conditions to consider as you decide if this type of loan or line of credit may be right for you.
- Borrowing with securities as collateral involves certain risks and is not suitable for everyone
- All collateral pledged for your loan or line of credit must be held in a separate cash or non-margin account.* Within this pledged account, your assets may not be withdrawn without lender approval. Additionally, with this account you may not be able to participate in options trading (for example, spreads and covered call writing), cannot have margin capability, or have any payment features, such as check-writing.
- Your loan may require you to make minimum monthly payments by a specified due date, until the loan is satisfied
- Your credit score may be pulled and must meet a minimum requirement for approval. Please be aware that the credit inquiry may impact your credit score.
- If the value of your pledged securities declines, you may be required to deposit additional funds or securities
- The loan can be called at any time, without notice, and some or all of your securities can be sold to meet the call, which may result in tax consequences for you
Learn how you can enjoy the flexibility of meeting today's cash flow needs, without compromising your future investing goals.
Open a new account or existing clients, call 800-669-3900.
Additionally, contact your Financial Consultant to discuss collateral lending options.