Are your clients looking for a liquidity solution that doesn’t involve liquidating their investment portfolios? Securities-based lines of credit, (SBLOC) allow borrowers to access cash with their portfolio serving as collateral—qualified equities, bonds or funds that are already owned. Principal can be re-paid at any time during the life of the loan – only interest is due monthly. The loan underwriting process is generally much quicker than some of the more traditional means of credit and the loan interest rates are often lower.
During market downturns, using SBLOC can prevent clients from needing to sell a security at a loss. During a rising market, it may mean avoiding having to recognize capital gains at an inopportune time. Also, during times of economic uncertainty having access to capital can address short and long-term cash flow needs.
SBLOC may be used for a wide range of needs, including:
- Bridge financing
- Tuition
- Real Estate
- Business investments
- Capital calls
- General cash flow needs
- Home renovations
- Startup funding
- Tax obligations
To learn more:
- View the overview brochure. (Note that the brochures are currently only available to IARs. A Rep-use version is in process.)
- Contact your Goldman Sachs rep for more information.
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