How you secure financing is as important as how you invest. Securities based lending (SBL) may help you secure the capital you need, when you want it, so you can catch your dreams—wisely.
The restaurant you’ve always wanted to open. That advanced degree you finally have time for. The perfect house that won’t be on the market long. A 1963 Ferrari GTO, just because.
Every dream starts with a vision and the right source of capital. How you secure financing is as important as how you invest. Securities-based lending (SBL) may help you secure the capital you need, when you want it, so you can catch your dreams—wisely.
SBL allows you to borrow funds using the value of your eligible securities as collateral. Your current investment strategy remains intact, so you can access funds efficiently without disrupting your long-term investment plans. SBL is a flexible credit line that you can use for many business or personal needs: small business ventures, real estate or home improvements, education costs, taxes, debt consolidation or any other unexpected expense.
There are several reasons why SBL may be the best lending solution for you. SBL offers extremely competitive interest rates that are often lower than traditional home equity line of credit (HELOC), commercial lending or margin borrowing—and it gives you the flexibility to set repayment terms. Plus, it’s fast and simple. The application process is straightforward, and there are typically no fees1 to open an SBL credit line. And once it’s set up, you can withdraw funds much more quickly than with a conventional loan—usually within two days. You may even want to keep it as a standby line of credit, so you can confidently meet new opportunities you haven’t even dreamed of yet.
There are risks associated with using your assets as collateral for a securities based loan, including possible margin calls on short notice. For more information about these risks, please click here.
SBL can help you manage your cash flow more effectively while maximizing your working capital. A Morgan Stanley Financial Advisor can help you decide if SBL is suitable for you and makes sense for your overall wealth management strategy. Because your Morgan Stanley Financial Advisor will have knowledge of both sides of your balance sheet, you can make educated decisions together about how best to put your assets to work.
We understand the value of a dream. And we’ll help you find the best way to catch it.