Securities-Backed Line Of Credit

If you already own stocks and bonds, you can leverage them to secure a Securities-Backed Line of Credit. This type of loan is backed by securities held in a portfolio, so the cash needs are satisfied without disrupting investments, investment strategies and asset allocation or creating unexpected tax consequences. Benetrends guides you through this option so can enjoy unparalleled flexibility, convenience and access to your funds while using your business loan to open your desired start-up company.

This form of funding is similar in concept to a home equity loan, but rather than the loan being backed by the equity in your home, it is backed by the securities held in your investment portfolio. Instead of selling stocks to buy a business, you simply borrow against them and generally pay only 2-4% interest, making it a very popular option.

Loan amount you can qualify for: 70% to 95% of your investment portfolio

Why use a securities-backed line of credit:

• Satisfy cash needs without selling assets, keeping your long-term investment plan in place
• Ensure investments remain in your name and do not need to be sold
• Because you don't need to sell your investments, you can avoid paying capital gains tax on your low-cost basis stock
• Keep all the appreciation and dividends from your portfolio
• Take advantage of an interest rate that’s usually lower than an SBA or home equity loan

Key Benefits OF SECURITIES-BACKED LINE OF CREDIT:

• Funds can be used for any purpose
• No non-usage or cancellation fee
• Receive funding in as little as 10 days
• Account application is a simple, two-page form
• Monthly interest-only payments available