Brokerage Line of Credit

You need liquidity for a business acquisition, real estate purchase, or tax obligation, but you want to avoid liquidating a taxable portfolio and triggering capital gains.

We help you evaluate the mechanics of a Securities-Backed Line of Credit (SBLOC), analyzing the cost of capital against the avoided tax liability, and stress-testing the strategy under different market conditions.

Using investments as collateral carries the risk of a margin call if the portfolio value declines. Interest rates are typically variable and can increase the carrying cost of the debt significantly over time.

Requires detailed portfolio statements, formal SBLOC agreements, a clear documented use of funds (especially if interest is to be deducted as a business or investment expense), and updated personal financial statements.

We coordinate with your licensed investment advisor and lending institution to ensure the facility is sized correctly and the risks are clearly understood before execution.