Leverage your investment portfolio for a loan.
Hanson Financial Group, LLC is a Registered Investment Advisor.
Reasons to Choose
Hanson
Financial Group
- No credit check
- No closing costs
- No prepayment penalties
- Up to 100% financing available
- Flexible payment options
- Interest-only payment options
- Rapid funding.
- Get a low interest rate of 5.9% on $1M loans vs. 11% from competitors
Leverage your investment portfolio for a loan.
Hanson Financial Group, LLC is a Registered Investment Advisor.
Reasons to Choose
Hanson
Financial Group
- No credit check
- No closing costs
- No prepayment penalties
- Up to 100% financing available
- Flexible payment options
- Interest-only payment options
- Rapid funding.
- Get a low interest rate of 5.9% on $1M loans vs. 11% from competitors
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WHAT IS A SECURITIES-BACKED LINE OF CREDIT?
A Securities-Backed Line of Credit is quite similar to a margin loan, with a few differences. These loans are provided by banks rather than brokerage firms and can be used for any purpose other than trading or purchasing securities. Unlike margin loans, these loans are completely underwritten, which takes longer to complete and involves greater scrutiny during the qualification process. SBLOCs have tighter restrictions on the sorts of securities that can be held in your account. Unlike margin loans, they cannot be easily moved from one lender to another, making refinancing more complex. Rates are normally variable; however, fixed rates are possible for larger loan amounts.
OVERVIEW OF MARGIN LOANS
Margin loans are a very flexible loan type that allows a borrower to lend against their investments for any cause. Funds may be borrowed in the form of cash or used inside the portfolio to purchase further investments. Margin loans have a variable rate structure and offer borrowers more control and better rates than other borrowing options. These loans do not amortize, which means there is no defined payment arrangement for principal or interest. This provides a borrower with a significant degree of flexibility in selecting how and when to make loan installments. The loan serves as a line of credit, with the cash available for any purpose or combination of purposes. Publicly traded stocks, bonds, exchange-traded funds (ETFs), mutual funds, and, in some situations, options are all acceptable types of collateral for margin loans. Retirement savings are not eligible as collateral for Margin loans. These loans are usually transferable from one custodian to another without the requirement to repay the loan. This means that if a borrower decides to switch brokerage firms in the future, renewing your margin loan is as simple as transferring your account to the new broker.
BENEFITS AND RISKS OF MARGIN LOANS
- There are usually no credit checks for most of the programs we offer since your items in your investment portfolio serves as collateral for your loan.
- You may use your borrowed funds for any purpose including financing or refinancing your mortgage, buying a business, purchase of a boat or a plane, large tax payments, and borrowing to purchase additional investments.
- You have the flexibility to choose how you pay your loan back over time as there are no set repayment schedule or repayment timeline.
- There are no closing costs or prepayment penalties.
- The typical set-up timeline for loan set-up from start to finish is about two weeks.
- Interest may be tax deductible.
- A portfolio loan allows your assets to keep working for you in the market and does not trigger a taxable event, which is the total opposite of selling asset for liquidity.
- You must maintain a maximum equity-to-debt ratio on both Margin Loans and Securities-Backed Lines of Credit. If your equity ratio goes below this level, you must raise more cash or sell a portion of your investments to fulfill the call and put your equity to debt ratios back into compliance with the program's standards.
WHY HANSON FINANCIAL GROUP IS THE RIGHT MATCH FOR YOU
We specialize in portfolio-based loans and strive to offer our clients the most competitive rates and a wide range of program options. This sets us apart from brokerage institutions and banks that frequently provide only one lending option. With our expertise in strategic lending partnerships and a strong emphasis on portfolio-based lending, we have a deep understanding of the industry and a strategic approach to offering our clients competitive lending solutions. Similar to a certified financial planner (CFP), we operate as an SEC Registered Investment Advisory (RIA) firm and uphold fiduciary responsibilities. Rest assured that our actions and recommendations are always driven by your best interest, with no hidden fees or commissions involved. At Hanson Financial Group, we never hold client assets as an RIA. Client assets are securely held with our trusted partner custodians/brokers, allowing you to have convenient 24/7 access and control over your account through their user-friendly online platforms. At Hanson Financial Group, we prioritize building strong relationships. We thoroughly assess your individual circumstances and aspirations, ensuring that we provide you with comprehensive information on the most suitable options for your specific requirements and goals.
GIVING THE BEST RATES COMPARED TO COMPETITORS
* Effective as of 8/1/23. The information provided by each firm is based on the standard margin loan rates found on their websites. Rates and offers from competitors may change without prior notice. Services may differ depending on the firm.
** Margin loans are available through unaffiliated third-party custodians. We may charge a small fee to access the rates mentioned above, but our goal is to offer the most competitive all-in margin costs in the industry.
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Tailoring a Program to Your Needs
As an expert in the portfolio-based lending space, we recognize that every program has its unique aspects and there are many factors to consider beyond just interest rates. Considering your specific circumstances, including your use case for funds, time frame, portfolio composition, desired loan size, investing experience, and personal liquidity levels, it is crucial to determine the program that will best suit your needs. At Hanson Financial Group, we are committed to providing comprehensive education to our clients regarding the various programs they can benefit from. We strongly believe in tailoring our strategies to meet each client's unique needs, rather than relying on a generic approach.
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