Securities-Based Borrowing

Securities-Based Borrowing for Individuals

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Access the Liquidity You Need Without Disrupting Your Long-Term Investment Strategy

A securities-based line of credit can help you meet near-term liquidity needs by unlocking the value of investments in your B. Riley Wealth Management brokerage account1. With a Priority Credit Line2, you can stay invested for the long-term because your securities serve as collateral for the line of credit.

Use the proceeds of a Priority Credit Line for many cash flow needs, including:

  • Business investment
  • Real Estate, personal or business
  • College expenses
  • Wedding
  • Debt Consolidation
  • Home improvement
  • Tax payments
  • Unplanned expenses
  • Emergencies

A Cost Effective and Flexible Way to Borrow

A Priority Credit Line provides easy access to funds whenever you need them and may be more cost effective than margin loans and other lending options. Consider these additional benefits:

• Variable interest rate close to the Prime lending rate.
• Avoid incurring capital gains tax when securities are liquidated.
• Draw on your line of credit via ACH, branch-issued check, or wire transfer.
• No minimum monthly interest or principal payments (may be subject to maintenance call if pledged securities go down in value).
• No set expiration term.

Talk to your B. Riley Wealth Management financial advisor about establishing a line of credit today so that it's ready when an opportunity or need arises.

Risks of a Securities-based Line of Credit
• Securities pledged as collateral could decline in value, resulting in a maintenance call for partial debt repayment or additional capital deposit.
• If you must sell securities to cover such a maintenance call, you could realize a loss on the securities sold.
• A tax obligation could result from the sale of pledged securities if the sales price is higher than the cost basis.
• Proceeds from a securities-based line of credit may not be used to purchase securities or pay off existing margin debt.
• You should read and understand the Lending Agreement and Account Terms and Conditions, which will be provided to you, before establishing a non-purpose loan.

1 Brokerage account(s) carried by First Clearing. First Clearing is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.
2 Priority Line of Credit is offered by B. Riley Wealth Management through First Clearing.