If your client owns stocks, bonds, mutual funds or other eligible securities, they could borrow up to 80 percent against the value of their investments by taking a portfolio loan. Portfolio loans, also referred to as stock loans or securities-based lending, work like a revolving line of credit — allowing individuals to finance a business or franchise by borrowing (and repaying) at will.
Portfolio loans can be a fast, low-cost approach to small business financing. If your candidate has at least $85,000 in brokerage accounts, they can qualify for a stock loan at a minimum of $55,000. The higher the value of their securities, the more money they can borrow.
Our team can help your candidate establish a portfolio loan for a 4 percent flat rate, and that percentage can be drawn from the total loan amount.
Franchisees can defer payments on portfolio loans for up to two years.
Portfolio loans have interest rates as low as 3 – 4 percent. No interest is owed unless funds are used.
Stock loans can close in as little as 10 days.
Through Guidant Financial’s network of major lending institutions, we can help your clients avoid high retail rates by gaining access to organizations that offer more economical options for portfolio loans.