Stock Securities Funding

A Credit Line for USA and International Securities Collateral

Stock Leverage Line Funding is a “non-purpose” securities portfolio-based credit line (stock loan) that is intended for any purpose other than the buying of more marginal stock.  It is a wholesale facility customized for the franchise, business acquisition, and commercial real estate with many features designed to benefit these markets.

You get the benefits of a U.S.-based loan that still allows you to keep your stock. The flexibility without dependence on credit, No restriction on use of funds except that they cannot be used to purchase more marginable securities. Also quick funding in 1-2 weeks, rate between 2.5% – 4.5% , LTV up to 80% with 3-10 yrs. loan period or longer.

Around the world the U. S. financial markets are recognized even today for their superior innovation and competitive rates and terms. In most cases, a line of credit from a major public institution outside of the U. S. is much more expensive, slower to close, with much higher interest rates and much lower loan-to-value. Bureaucracy, fees, delays, high documentation — the list goes on.

We combine the best of both worlds through our partnership with a major U. S.-based brokerage/bank: The convenience of keeping your securities in your own country and account, with the great features of our market-best leverage line if your portfolio qualifies.

Details: Applying for a  stock loan is very simple. You only need a recent brokerage statement and a passport or driver’s license, and you apply via our secure (256-bit encrypted and https) application form on our website. The form is entirely online and the brokerage statement and ID are held in strict confidence per our privacy policy and used solely to determine your terms. All documents are purged from our systems once your documents have been analyzed by your licensed lending institution and your term sheet has been generated and delivered to you.

Your term sheet is delivered electronically via a secure, Verisign/Echosign system which allows downloading of a PDF copy and signing with two clicks.

We serve the USA market and the following non-U. S. markets:

  1. Hong Kong
  2. Japan
  3. Sinagpore
  4. Western Europe 
  5. Canada
  6. Australia
  7. (All countries) American Depository Receipts (ADR)

Acceptable Collateral?

Stocks, bonds, mutual funds, ETFs, non-corporate bonds, and most other unrestricted securities trading on any major U. S. exchange at $5 a share or higher.

We can also provide financing against selected pre-IPO stock with proper registration. For cross-collateral transactions, eligible securities plus real estate, or selected high net worth assets can be grouped into a single credit line. Both pre-IPO and cross-collateralized transactions are handled on a case-by-case basis. 

We  will review your assets to let you know if they are eligible. As always, all financing offered is exclusively through fully licensed, U. S.-based institutional lenders only.

We do not accept medium-term-notes (MTNs), letters of credit, foreign bonds, real estate/mortgage-based bonds, or securities that are in an IRA, 401K or Keogh plan as collateral for the LeverageLine program. Applying for a  stock loan

Program Comparison SBL vs. SBLOC (Stock Securities Based Line Of Credit


Securities-Based Loan
Securities Based Line of Credit 
Type of Loan Loan with Fixed Term Revolving Line of Credit
Loan Payment Structure Interest-Only payments Interest-Only payments
Interest Rates Fixed 2.5% to 4.5% ARM 2.50% +
Fixed 3.75% +
Loan Payment Frequency Quarterly Monthly
Taxable Event No No
Pre-Payment Penalty None
(US citizens only)
ARM – No
Fixed Rate – Yes
Lock-Out Period No
(US citizens only)
Assets Must Be Moved Yes-transferred to lenders name Yes-but they stay in clients name
Assets Stay in Clients Name and Control No Yes
Client May Trade or Sell Securities in the account No Yes
Borrower Receives Credit For Dividends on Securities Yes Yes
Current Liens on Portfolio May Be Paid With Proceeds of New Loan. No Yes
Borrower Receives Upside Appreciation Yes – At loan payoff Yes
SIPC Insured Account No Yes
Credit Check None None
Income Verification None None
Personal Recourse Loan No No
Minimum Asset Value Penney Stocks OK* $5.00 per share*
Other Fees None None
Yearly Maintenance Fee None None
Minimum Loan Amount $100,000 $100,000
Maximum Loan Amount No Limit Limitations
Quick Funding Yes Yes

Applying for a  stock loan

Stocking Funding Example below:

  • Portfolio Value: $200,000
  • Loan to Value: 77%:
  • Loan/Credit Line Value: $154,000
  • Rate base (2%) + current monthly LIBOR (.44): 2.44%
  • Annualized: 2.44%  outstanding balance ($154,000) = $3,756
  • Divided by 12 for amount due: $313 due this month on $154,000 loan.

Get a free, no-obligation term sheet: