If you’re looking to access funds without having to sell your investment portfolio, securities-backed lines of credit (SBLOC’s) may be a good option for you. This type of credit allows you to borrow against the value of your portfolio, typically ranging from 50%-90% depending on the volatility of the underlying stocks. One of the biggest advantages of this type of credit is that it’s set up as a line of credit, which means you can use it when you need it and you won’t have a defined payback schedule. Additionally, the interest rates are often lower than bank loans or other funding options. By borrowing against the value of your portfolio, you can avoid capital gains taxes. This type of credit is also a good option for those with low credit scores, as the lender is evaluating solely based on the value and mix of your portfolio.
NOT INTENDED TO SUBSTITUTE FOR OBTAINING ACCOUNTING, TAX, OR FINANCIAL ADVICE