Whether you’re buying a home, paying your taxes, funding a college education, or starting a business, your assets held at Janney can serve as a convenient source of financing whenever you need it.

WHAT IS PORTFOLIO-BASED LENDING?

Portfolio-based lending allows you to borrow against the value of your securities, without disrupting your long-term investment strategy. With this type of loan, you can leverage the value of your investment portfolio for quick access to cash.

GET IMMEDIATE ACCESS TO FUNDS TO MEET A WIDE RANGE OF NEEDS

Short-term borrowing

  • Real estate purchases and home improvements
  • Tax payments
  • Unexpected expenses or debt consolidation
  • Education, weddings, divorce costs
  • Cash flow management for businesses Investment financing
  • Purchase additional investments and securities for your portfolio

WHY IT’S A SMART CHOICE

Stay on track to meet your financial goals

  • No disruption in your long-term investment strategy as your securities remain fully invested while you borrow funds

Convenient and flexible

  • No application fee
  • No lengthy loan review process (no bank statements, tax forms, or W9s are required)
  • No set loan repayment schedule and you can choose to pay back what you want, when you want (Note: interest will accrue on any outstanding loan balance)
  • No credit check: since you are using the securities you own for collateral
  • It offers competitive rates when compared to other short-term lending options, such as credit cards and personal loans
  • Loan proceeds can be accessed quickly and easily via check or debit card, and you can use one line of credit for multiple purposes

UNDERSTANDING THE RISKS

Keep in mind the following borrowing risks of portfolio-based lending

  • You will need to keep your account in line with monthly maintenance requirements—if the value of your investments declines, you may face a maintenance call
  • If you fail to meet the minimum requirements in your account, your financial institution may sell some or all of your securities with or without your approval and can do so without notice

MINIMIZE THE RISKS OF BORROWING

  • Select higher quality and less volatile securities as collateral
  • Borrow less than the maximum amount permitted against your investments
  • Monitor your portfolio carefully, especially when markets are volatile
  • Repay your loan and any related interest as quickly as funds are available
  • Diversify your portfolio to help minimize portfolio fluctuation

HOW CAN I QUALIFY?

You’ll need eligible collateral within your portfolio, which can include:

  • Equity securities, including ETFs and most mutual funds, valued at or above $5 per share (limitations may apply)
  • Fixed-income investments, including most investment-grade corporate, treasury, municipal, and government agency bonds
  • Limited partnership stocks traded on an exchange

Ineligible assets:

  • Retirement accounts
  • Annuities
  • Equity securities below $5 per share
  • Options
  • Non-investment grade municipal and corporate debt
  • Control and restricted stock
  • Structured notes

Eligible securities are subject to change. Some listed and other securities are not eligible for margin. Margin lending is not available for retirement accounts, annuities, UGMA/UTMA accounts, money market funds, CDs, many international securities, certain managed accounts and certain other securities.

Margin borrowing is not ideal for all investors. You will need to keep your account in line with monthly maintenance requirements. If the value of your investments declines, you may face a margin call. A margin call occurs when your account value falls to a value below that of the required minimum “security collateral value” or maintenance level. You are then required to add additional cash or securities until the value of your investments is brought up to the minimum maintenance level. There is no extension of time on a margin call. If you fail to meet the minimum requirements in your account, Janney may be forced to sell some or all of your securities with or without your approval, and can do so without notice to you. If securities are held on margin on the record date for a proxy vote, you will not be entitled to vote by proxy for those securities.

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: http://brokercheck.finra.org/