By Bryan Loew, Head of Wealth Lending Sales
Seeking to maximize your wealth requires understanding of your financial goals and building strategies to work towards them. But how do you manage when your long-term financial goals are challenged by your short-term needs? In today’s competitive marketplace, securities-backed lines of credit can provide liquidity while allowing long-term investment strategies to stay on track.
What is a collateralized loan?
A collateralized or securities-based loan allows you to utilize securities, cash, and other assets in brokerage accounts as collateral to obtain variable or fixed-rate loans for almost any purpose. Borrowing against assets in an effort to preserve both wealth and wealth-building strategies may be a prudent solution for people who would like to consolidate debt, purchase or expand a business, invest in real estate, pay for luxury items, fund education or satisfy any immediate financial need without liquidating assets. These loans differ from margin loans in that they may not be used to purchase securities and typically have higher advance ratios.