Securities-Based Lending

Securities-Based Lending 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 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:

  • Liquidity for Your Business
  • Real Estate, personal or investment property
  • College expenses
  • Wedding
  • Debt Consolidation
  • Home improvement
  • Tax payments
  • Unplanned expenses
  • Emergencies

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.