What is the benefit of taking out a Premier LOC vs. selling portfolio assets?

Using a Premier LOC will enable you to retain assets, keep your portfolio in line for long-term growth, and not trigger capital gains taxes.

What are the benefits of a Premier LOC vs. taking out a margin loan, HELOC, or unsecured loan?

Markets have been volatile for some time. Can I lose my portfolio assets if their market value decreases?

How much can I borrow?

Do I need to provide income or tax statements to apply for a Premier LOC?

What are the Premier LOC repayment terms?

Can I request an increase in my credit line?

How quickly can I access funds with a Premier LOC?

How can I disburse the funds?
 

1. Subject to credit approval and underwriting.

2. The SBLOC cannot be used to purchase additional securities or to pay off a margin loan used to purchase securities.

3. Securities-based borrowing has special risks and may not be suitable for everyone. Consult a financial advisor about any associated risks. Consult a tax advisor for tax-related matters and an attorney for legal matters. The Bancorp Bank, N.A. does not provide financial, tax or legal advice.

4. The 95% advance rate is for an all-cash portfolio.

5. Bankrate. Wall Street Journal prime rate. January 2025.

6. Fidelity Investments. Margin loans. January 2025.

7. Charles Schwab. Schwab margin rates and requirements. December 2024.

8. Wells Fargo. Margin Accounts. January 2025.

9. Morgan Stanley. Margin Interest Rate Schedule. December 2024.

10. Raymond James. Margin loans. December 2024.

11. Average interest rate for $250,000 margin loan based on rates from Fidelity Investments (10.825%), Charles Schwab (10.825%), Wells Fargo (11.25%), Morgan Stanley (10.95%) and Raymond James (11.0%).

12. Bankrate. Current home equity interest rates. Rate was calculated using a loan or line amount of $30,000, with a FICO score of 700 and a combined loan-to-value ratio of 80%. January 2025.

13. Bankrate. Best personal loan rates for January 2025. Lowest APR range for a loan up to $100,000 (Minimum Credit Score: 695) from LightStream.

14. Minimum requested amount must be $75,000.00 or such greater amount as may be proscribed from time to time pursuant to 12 C.F.R. Section 1026.3(b) of Regulation Z issued by the Consumer Financial Protection Bureau as the minimum threshold necessary to qualify the Line of Credit as an exempt consumer credit transaction thereunder.

15. The Bancorp Bank, N.A. does not charge an application fee. State, local, and/or third-party fees may apply in some states.

16. Clients should consult with a tax professional regarding potential tax implications involving the investment portfolio.

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