Superior Business Lending
(800) 994-0684

info@superiorbusinesslending.com
Superior Business Lending
65 W. Jackson Blvd., #226

Chicago, IL 60604

Superior Business Lending

Securities-Based Lending

Securities-Based Lending: Comprehensive Guide to Flexible Financing

What is Securities-Based Lending?

Securities-based lending (SBL) enables individuals and businesses to borrow money by leveraging their investment portfolio as collateral. This approach provides quick liquidity without selling your financial assets, preserving potential market gains.

Types of Securities Eligible for SBL

  • Publicly Traded Stocks
  • Private Company Stocks (for qualifying private companies)
  • Bonds
  • Mutual Funds
  • Exchange-Traded Funds (ETFs)

Securities-Based Lending

Benefits of Securities-Based Lending

  • Immediate Liquidity: Access funds rapidly without liquidating your investments.
  • Competitive Interest Rates: Generally lower rates compared to unsecured financing.
  • Flexible Repayment: Interest-only payments, with flexible terms on principal repayment.
  • Tax Efficiency: Avoid triggering capital gains taxes by retaining asset ownership.
  • High Loan Amounts: Borrow from $100,000 up to $50 million+, depending on your portfolio value.

NAV Loans (Net Asset Value Loans)

Ideal for substantial portfolios, NAV loans provide:

  • Large-Scale Financing: High-value credit lines tailored to significant portfolios.
  • Few Restrictions: Flexible funding for business or personal investments.
  • Competitive Terms: Attractive interest rates and repayment terms.

Securities-Based Lending for Private Companies

Private company owners can leverage shares of their privately-held businesses to secure substantial funding:

  • Private Equity Loans: Use equity in private companies as collateral.
  • High Borrowing Potential: Obtain financing based on company valuation.

Benefits of Securities-Based Lending for Businesses

  • Quick Access to Capital: Expedite funding without asset liquidation.
  • Support Growth Initiatives: Ideal for expansion, acquisitions, or business improvements.
  • Improved Cash Flow Management: Efficiently manage financial obligations without interrupting operations.

Ideal Candidates for Securities-Based Lending

  • High-net-worth individuals seeking liquidity
  • Investors wanting tax-efficient capital
  • Entrepreneurs requiring flexible operational funds
  • Private business owners leveraging company equity

Risks and Considerations

  • Market Volatility: Portfolio value fluctuations can affect collateral.
  • Margin Calls: Borrowers must maintain sufficient collateral value to avoid repayment demands.

Frequently Asked Questions (FAQs)

What assets qualify for securities-based lending?

Assets include publicly traded stocks, bonds, mutual funds, ETFs, and qualified private company shares.

How much can I borrow with securities-based lending?

Typically, borrowers can access up to 80% of the portfolio value, ranging from $100,000 up to $50 million+.

Gain Financial Flexibility with Securities-Based Lending

Use your investments strategically without selling them. Contact our specialists to discover customized securities-based lending solutions designed to achieve your financial goals.