Luxury Financing Using a Securities-Based Line of Credit

The recent credit crunch has made financing for even the wealthiest individuals challenging. So when it comes to purchasing luxury items such as yachts, airplanes and high end automobiles, etc. even people with a great credit score and good financials are seeing interest rates as high as 10% +. This shortage of acceptable financing means that some may feel the need to dip into their cash reserves or liquidate some of their assets such as stocks, bonds or mutual funds in order to make some of their desired purchases.

Covenant Financial Group is giving people the opportunity to leverage their portfolios instead of liquidating them with a Securities Based Line of Credit (SBLOC). Our line of credit program offers interest rates as low as 1.5% variable and 3% fixed with many other attractive features, making this not only an alternative but also a substitute to traditional financing.

Leveraging as against selling allows the investor to continue to receive dividends and profit from any future upside growth in their portfolios, while enabling them to make interest only payments and pre-pay the loan at anytime. This relieves the client of the pressure they may feel from other financing options.

Unlike traditional financing, a Securities Based Line of Credit (SBLOC) is based on the strength of the securities portfolio as opposed to the strength of the borrower’s credit or source of income. This “Limited Doc” line of credit means less paperwork, faster approvals and immediate access to cash when it’s essential.

To receive a no obligation loan quote, please complete and submit a Quote Request Form:

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