Securities Based Line of Credit
Maybe you see a rare chance to expand an existing business or acquire a new one. Perhaps you need a bridge loan for a project. Or, now seems to be the perfect time to finally buy that vacation home. A Securities Based Line of Credit can help you capitalize on life’s opportunities and is flexible enough to meet almost any personal or business financing need. The loan is collateralized by securities within your Raymond James brokerage accounts, giving you increased borrowing power and highly competitive pricing. Rather than sell securities and disrupt your long-term investment plans, you can use your Securities Based Line of Credit for the liquidity you need to enjoy more of what life has to offer.
Please note, the proceeds from a Securities Based Line of Credit cannot be used to purchase or carry margin securities.1
For more information on Securities Based Lines of Credit, please speak with your Raymond James financial advisor.
1A Securities Based Line of Credit (SBLC) may not be suitable for all clients. The proceeds from an SBLC cannot be used to purchase or carry margin securities. Raymond James Bank does not accept RJF stock as pledged securities towards an SBLC. Borrowing on securities based lending products and using securities as collateral may involve a high degree of risk including unintended tax consequences and the possible need to sell your holdings, which may lead to a significant impact on long-term investment goals. Market conditions can magnify any potential for loss. If the market turns against the client, he or she may be required to quickly deposit additional securities and/or cash in the account(s) or pay down the loan to avoid liquidation. The securities in the Pledged Account(s) may be sold to meet the Collateral Call, and the firm can sell the client’s securities without contacting them. A client is not entitled to choose which securities or other assets in his or her account are liquidated or sold to meet a Collateral Call. The firm can increase its maintenance requirements at any time and is not required to provide a client advance written notice. A client is not entitled to an extension of time on a Collateral Call. Increased interest rates could also affect LIBOR rates that apply to your SBLC causing the cost of the credit line to increase significantly. The interest rates charged are determined by the market value of pledged assets and the net value of the client’s Capital Access account.
Securities Based Line of Credit provided by Raymond James Bank, N.A. Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are affiliated with Raymond James Bank, N.A., a federally chartered national bank.
Products, terms and conditions subject to change. Subject to standard credit criteria.
Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are affiliated with Raymond James Bank, N.A. Unless otherwise specified, products purchased from or held at Raymond James & Associates or Raymond James Financial Services are not insured by the FDIC, are not deposits or other obligations of Raymond James Bank, are not guaranteed by Raymond James Bank and are subject to investment risks, including possible loss of the principal invested.