Securities-Based Borrowing for Individuals

Access the Liquidity You Need Without Disrupting Your Long-Term Investment Strategy

Securities-based borrowing lets you use eligible securities as collateral, so you can get money you need today without disrupting your investment portfolio. You can choose from different lines of credit to access funds for practically any purpose. As long as your account has sufficient eligible securities to use as collateral, this type of credit line may be easier to obtain and potentially more cost-effective than other alternatives.

The risks of securities-based borrowing include:

  • Market fluctuations that may cause the value of pledged assets to decline
  • A decline in the value of your securities that could result in selling your securities to maintain equity
  • Adverse tax consequences as a result of selling securities1

Borrowing for a Range of Needs

Securities-based borrowing adds flexibility to your personal and business finances without disrupting your long-term investment strategy. How you use these credit solutions is as unique as you

Some of the most common uses include:

  • Unexpected expenses
  • Home renovations
  • Real estate purchase2
  • Tax bills
  • Debt consolidation
  • Business opportunity

Speak with your Wunderlich financial advisor to determine if a securities-based borrowing strategy may be right for you.

 You Have Access to the Following Alternatives:
 

Margin Account Enhanced
Non-Purpose Loan
Secured PrimeLine®
Line of Credit
Custom Loans
Product description
A convenient financing
source to pursue investment
opportunities or to meet
other personal financing
goals offered through
First Clearing†.
A line of credit backed by
eligible securities offered
through First Clearing.
A line of credit backed
by your eligible securities
offered through Wells Fargo
Bank.
Customized loans or lines of
credit with flexible advance
rates and terms offered
through Wells Fargo Bank.
Borrowing need3 Any amount Any amount; generally
for $100,000 to $1 million
$250,000 minimum;
generally for $500,000
to $5 million
$1 million minimum;
generally for $5 million
and up
Fund access Check, check card, and
wire transfer4
Check, online, ACH,
and wire transfer
Check, online transfer,
and wire transfer
Wire transfer
Uses Anything including to
purchase securities
Anything except to
purchase securities or
pay down margin
Anything except to
purchase securities or
pay down margin
Anything except to
purchase securities or
pay down margin
Typical loan-to-value 50% - 90% based on
asset class
60% - 90% based
on asset class
50% - 95% based on
asset class and
underwriting option
50% - 95% based
on asset class
Term No set expiration No set expiration
60 months Varies
Interest rate index Varies Varies Wells Fargo Bank’s Prime
rate or LIBOR
Wells Fargo Bank’s Prime
rate or LIBOR
Payment required No minimum monthly
interest payment required
No minimum monthly
interest payment required
Monthly interest only Monthly interest only
Underwriting requirement Collateral review Collateral review
Collateral and
borrower review
Collateral and
borrower review

1 Wunderlich Securities, Wells Fargo & Company and its affiliates are not tax or legal advisors.

Financing real estate with a securities-based line of credit carries risk and may not be appropriate for your needs. A complete assessment of your circumstances is needed to help you determine which type of loan provides the best fit. All loans are subject to credit approval. Wells Fargo & Company and its affiliates do not provide tax or legal advice. Please consult your tax or legal advisors to determine how any credit may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared.

Subject to minimum equity requirements.

Command checks and debit cards are only available through the Command Asset Program. Margin borrowing may not be suitable for all investors. When you use margin, you are subject to a high degree of risk. Market conditions can magnify any potential for loss. The value of the securities you hold in your account, which will fluctuate, must be maintained above a minimum value in order for the loan to remain in good standing. If it is not, you will be required to deposit additional securities and/or cash in the account or securities in the account may be sold. Please carefully review the margin agreement, which explains the terms and conditions of the margin account, including how the interest on the loan is calculated.

Secured PrimeLine, Secured Term Loan, and Custom Line of Credit lines of credit are offered by Wells Fargo Bank, N.A. (member FDIC), a banking affiliate of Wells Fargo & Company.

Securities-based lending has special risks and is not suitable for everyone. If the market value of your pledged securities declines below required levels, you may be required to pay down your loan or line of credit or pledge additional eligible securities in order to maintain it, or the lender may require the sale of some or all of your pledged securities. The sale of your pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. Wells Fargo & Company and its affiliates are not tax or legal advisors. All securities and accounts are subject to eligibility requirements. Please read all lines of credit documents carefully. The proceeds from some asset-backed line of credit may not be used to purchase additional securities or pay down margin. Securities held in a retirement account cannot be used as collateral to obtain a loan. Securities purchased in the pledge account must meet collateral eligibility requirements. Other account fees, fund expenses, brokerage commissions, and service fees may apply.

Investment and Insurance Products: ► NOT FDIC Insured ► NO Bank Guarantee ► MAY Lose Value

Brokerage account(s) carried by First Clearing. First Clearing is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. © 2011-2016 Wells Fargo Clearing Services, LLC. All rights reserved. 0116-00655.