Securities Based Lending

Increase Cash Flow Without Selling Your Investments

Securities-based borrowing is a line of credit available to Commerce Trust clients who need liquidity, but do not want to sell their investment portfolio. A securities-based line of credit can generally be established quickly, typically at a lower interest rate than traditional loans and lines of credit secured by real estate. These lending arrangements depend on whether you have sufficient eligible securities to use as collateral.
Savvy investors often choose securities-based lines of credit in lieu of liquidating their securities portfolio to create cash flow, avoid a taxable event, and stay on track with their investment strategy.