The E*TRADE Advisor Services Line of Credit by Supernova Technology can help your clients strategically unlock the value of their portfolios and maximize their liquidity.
This securities-based lending tool enables clients to borrow money using their eligible investments as collateral1.
Enhance your level of support
By offering this flexible financing solution to your clients, you may be able to:
• Deepen client relationships. Coming to you for financial products like a line of credit reduces your clients’ need to visit other financial institutions. This further strengthens their relationship with your firm.
• Boost client retention rates. Having a line of credit in place with your firm can make some clients less likely to switch to another advisor.
• Be more competitive. Helping clients maximize liquidity by using a revolving line of credit can give your firm a leg up on other financial advisors who don’t offer this kind of financial tool.
The E*TRADE Advisor Services Line of Credit enables clients to take advantage of the borrowing power of their investments to meet their financing needs. It also gives them the freedom to use the funds when it best suits them.
A line of credit can give clients the flexibility to manage their cash flow without disrupting their investment plans. This helps clients maintain their long-term financial strategies and benefit from any potential market gains.
There are no preset monthly payment schedules for repayment of principal on the E*TRADE Line of Credit. Clients can set up their own repayment schedule that matches their cash flow needs. For example, they can make monthly interest-only payments or repay principal according to their own amortization schedule.
Low interest rate and no hidden fees
Interest rates on an E*TRADE Line of Credit are lower than rates on some other comparable credit sources. There are no application fees, points, or closing costs, or any hidden fees or expenses. And there are no prepayment penalties – clients can close the line of credit at any time without penalty.
The E*TRADE Line of Credit is a revolving line of credit offered by E*TRADE Savings Bank. It enables clients with $50,000 or more in their Liberty accounts2 to borrow up to 50% of their eligible securities3 for a wide range of purposes, using their securities as collateral for the loan.
Clients pay interest on funds drawn on the line, and they have options when it comes to loan repayment. Interest-only payments can be made each month, or clients can amortize the loan and repay the principal according to their own schedule.4
While offering an array of benefits, borrowing against securities involves risks and important considerations. For example, borrowed funds cannot be used for purchase, carrying, or trading of securities or repayment of a margin loan.5
PLEASE READ THE IMPORTANT DISCLOSURES BELOW.
1. The E*TRADE Line of Credit is offered by E*TRADE Savings Bank, a federal savings bank, Member FDIC. The E*TRADE Line of Credit is subject to bank and credit approval. Eligible collateral must be maintained at E*TRADE Securities LLC or E*TRADE Savings Bank. E*TRADE Savings Bank and E*TRADE Securities LLC are separate but affiliated companies. Nothing herein should be interpreted as imposing an obligation on E*TRADE Savings Bank to lend. Proceeds from the E*TRADE Line of Credit may not be used to purchase securities or pay down margin loans and may not be deposited into an E*TRADE Securities LLC account or into a brokerage account. Rates, terms, and conditions are subject to change without notice. If any of the pledged collateral for the E*TRADE Line of Credit is held in an E*TRADE managed portfolio, failure to satisfy a maintenance call may result in the termination of any applicable advisory agreement.
2. Clients are required to maintain a minimum level of eligible securities in their collateral account. A decrease in the market value of their collateral may require them to deposit additional cash or securities. All collateral is subject to approval and E*TRADE Savings Bank may change its collateral requirements at any time.
3. Clients may be able to borrow up to 50% of their eligible collateral market value, at E*TRADE Savings Bank’s discretion. In some cases, due to certain risk factors like security concentration or liquidity issues, the amount clients can borrow may be less.
4. A processing fee, currently $10, will be charged for Line of Credit payments made by check.
5. Securities-based lending tools like the E*TRADE Line of Credit involve certain additional risks and considerations, including the following:
The E*TRADE Line of Credit is powered by the Briteline platform of Supernova Technology™. Clients may be contacted by companies working on E*TRADE Savings Bank’s behalf to service the client’s Line of Credit, including Supernova Companies™ or Supernova Technology™.
E*TRADE is a registered trademark of E*TRADE Financial Corporation.
The E*TRADE Financial family of companies provides financial services, including trading, investing, investment advisory, and banking products and services, to retail customers.
Securities products and services offered by E*TRADE Securities LLC, Member FINRA/SIPC.
E*TRADE Savings Bank and E*TRADE Securities LLC are separate but affiliated companies.
Neither E*TRADE Financial Corporation nor any of its subsidiaries, including E*TRADE Savings Bank, is affiliated with Supernova Companies, LLC™.