The Private Bank at Commerce Trust helps clients, like business owners and commission- or bonus-based executives, maintain steady cash flow while avoiding a taxable event that could occur if they liquidated securities in their portfolio. Private Bankers also help clients purchase luxury items like boats and aircraft with specialty loans.
Securities-based Loans and Lines of Credit
The Private Bank offers securities-based borrowing to 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 enough eligible securities to use as collateral.
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
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 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. An experienced advisor can help you see how securities-based lines of credit can play a role in a comprehensive approach to wealth management. This material is not a recommendation of any particular security, is not based on any particular financial situation or need, and is not intended to replace the advice of a qualified attorney, tax advisor or investment professional. Commerce does not provide tax advice or legal advice to customers. Consult a tax specialist regarding tax implications related to any product and specific financial situations.
The Private Bank helps clients borrow against their stock in a privately held company to have liquidity for large purchases or to buy additional shares without selling the underlying stock. Shareholders receive dividends while leveraging the stock and can repay the loan at a future date.
Borrowing against the stock of a privately held company may be a liquidity option for you if the company has:
⦁ Revenue greater than $300,000,000
⦁ A strong balance sheet
⦁ The ability to buy back stock at the current valuation
The Private Bank helps clients interested in private air travel explore their options to purchase, lease, or charter, and secure the financing or funds necessary to support their lifestyle. Learn more about your private air travel options.
Request a call from a Private Banker for help exploring borrowing options available to help you achieve your cash flow and lifestyle goals.The Private Bank at Commerce Trust is a business unit of Commerce Trust, a division of Commerce Bank. Products and services referenced here are available through bank and non-bank affiliates of Commerce Bank.
Mutual funds, annuities, and other investment products: Not FDIC-insured | May lose value | No bank guarantee
Investing involves risk. There is always the potential of losing money when you invest in securities.
Commerce Trust does not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
Past performance is no guarantee of future results.
Information or data from third parties is considered to be from reliable sources but is not guaranteed.