Securities-Based Borrowing
Securities-Based Borrowing for Individuals
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 brokerage account1. With a securities-based line of credit, you can stay invested for the long-term because your securities serve as collateral for the line of credit.
Use the proceeds of a Securities-Based Line of Credit for many cash flow needs, including:
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A Cost Effective and Flexible Way to Borrow
A securities-based line of credit 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 or wire transfer.
Talk to your B. Riley Wealth financial professional 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 securities-based line of credit.
1 Offered by B. Riley Wealth Management through third-party banking sources.