Portfolio Based Lines of Credit

Executive Capital Finance represents a US investment banking firm that secures lines of credit for small and medium sized US businesses. The lender provides a securities based line of credit which is founded on the same principles as a standard margin loan but with a much higher (70 - 90%) loan to asset value and lower interest rates. The process is funded and managed by major global banking and brokerage institutions and shares remain 100% titled in the clients name. Eligible securities are listed in the right hand column of this page.

Securities Capital can be used for any legal purpose (other than the purchase of additional marginable securities) including franchise or business financing, real estate investment financing, debt restructuring  transactions or even the purchase of luxury items.

The product has many features, including but not limited to:

• Revolving line of credit – only charged interest on what you use
• Choose from floating or fixed rates with the ability to convert from floating to fixed at any time 
• Interest rates as low as 1.5% on floating rate securities based loans
• Loan to value ranging from 70-90% of the value of the securities 
• Securities remain titled in client’s name
• Limited documentation - not credit or income based 
• No prepayment penalty with the variable rate option 
• Dividends paid direct to client or credited against interest 
• Client receives 100% of portfolio appreciation 
• Wide range of eligible securities accepted
• Foreign nationals and foreign securities accepted
• Fast Closing - as little as 10-14 days

How does this get me the best securities loan on the market?            Working relationships with major banking and brokerage institutions around the world and a thorough knowledge of each of their products make this possible. The firm will analyze your securities portfolio and specific needs and then go to work to produce the best rates and terms available in the marketplace.

How much can I borrow against my securities portfolio?
Depending on the type of securities you own, you will be able to borrow between 70%-90% of your portfolio value.

What kind of interest rate can I expect, and how is it determined?
Interest rates are determined primarily by the loan amount and the exact lending institution. The larger the loan or credit line, the lower the interest rate. Rates can start as low as 1.5% on our variable rate products.

Are there fixed rates available?
Yes. The lender offers fixed rate programs at a slightly higher interest rate, typically for 2-3 year terms.  

How is my loan repaid?
You will have either a monthly or quarterly annualized interest only payment due.

Is there a penalty for paying the loan off early?
Variable rate loans may be prepaid at any time with no penalty. Fixed rate loans would incur a pre-payment penalty if paid off early.  Also, those clients with variable rates have the option to convert to a fixed rate at any time.  

Do I have to move my account from my current brokerage?  
Yes. There is no way for the lender to properly place an interest on the securities assets while they are at a different brokerage, but the securities remain in your name, the account is in your name and you retain full title of ownership.

Who will the brokerage/lending institution be and how do I know they are reputable?
The lender has relationships with major brokerage/lending institutions. You will have the opportunity to speak directly with a bank advisor prior to making any commitment to insure you are comfortable with the level of service.

Will I have to call my broker in order to transfer my account?
No. Your new broker can initiate the transfer for you with just your signature.

How quickly can my loan close?
The entire loan process can be completed and funds available to draw in as little as 10-14 days from initial inquiry.

When and how can I access my credit line?
Once you are approved, you will have access to your credit line at any time via check, bank card or wire.

Will I receive a regular account statement?
Yes, as with any brokerage/banking account you will receive monthly account statements and can also get an online copy of your account at any time.

What is the difference between a securities based line of credit and a margin loan?
The major differences between a securities based line of credit and a margin loan are the interest rates and LTV. Margin loans are typically used to borrow against one security to buy another. Interest rates are typically quite high and the loan will be limited to 50% of the value.  The only restriction on the use of a securities based line of credit is it cannot be used it to purchase additional securities. The interest rates are usually much lower and you can borrow as high as 70%-90% of the value of your pledged securities.

What is the difference between a securities based line of credit and a Transfer of Title loan?
There are several differences, but most important is that a securities based line of credit does not require you to transfer title to the lender.  Many companies advertise non-recourse stock loans but fail to mention that you are relinquishing ownership and control of your portfolio during the loan term and that all or part of your securities may actually be sold in order to fund your loan.

I am ready to proceed, what's the next step?
Contact us by email or go to the right hand column of this page and complete the Contact Form. Also, please have a recent account statement available in PDF format. We will respond to you within 48 hours.

Contact us by email at: info@executivecapitalfinance.com

There are no upfront fees or costs involved with securities based lines of credit. Request an application today.