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.
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.
A securities-based line can be used to:
■ Purchase or renovate your home or vacation/investment property
■ Pay taxes or education expenses
■ Purchase luxury items such as a boat or car
■ Invest in business opportunities
■ Fund unexpected expenses such as a major repair or medical bill
A securities-based line can be used to:
■ Purchase or renovate your home or vacation/investment property
■ Pay taxes or education expenses
■ Purchase luxury items such as a boat or car
■ Invest in business opportunities
■ Fund unexpected expenses such as a major repair or medical bill
SECURITIES-BASED BORROWING CARRIES SOME RISK
Securities-based borrowing exposes the borrower to some risks. If the value of the underlying investments decreases sharply, the borrower may need to expedite repayment or sell investments to meet the terms of the agreement. Selling investment securities may result in adverse tax obligations. Loan proceeds may not be used to purchase, carry, or trade securities; refinance or repay margin loans; or repay any other loan used for securities purchases. An experienced advisor can help you see how securities-based lines of credit can play a role in a comprehensive approach to wealth management.
COMMERCE TRUST SECURITIES-BASED LINES OF CREDIT:
Are Exclusively For Commerce Trust Private Banking Clients
Require A $150,000 Line of Credit Minimum With No Maximum
Offer A Flexible Repayment Schedule and an Interest-Only Payment Option
Contact us to learn how a securities-based line of credit can meet your cash flow needs while you stay invested.