A Securities Based Loan is NOT a Margin Loan, and has significant advantages over a conventional margin loan. 

Below are several of the differences between the typical Margin Loan (ML) and a Securities Based Loan (SBL):

ML: FULL recourse loan - additional liability, fees and penalties may be assessed

SBL: NON-recourse loan - you may walk away with NO liability, penalties or fees

ML: Higher interest rates, typically between 5% - 9%, variable

SBL: Lower interest rates, between 2.5% - 4.5%, fixed

ML: Maximum LTV = 50%

SBL: Maximum LTV = 80%

ML: Not all NASDAQ, AMEX, NYSE stocks are "marginable"

SBL: Loans available against all types of securities that qualify (including OTC, ETF, BB and "pink sheets")

ML: If share value drops below 75% of original total share value, a margin call is initiated and may result in the sale of your stock within 24 hours.  This is based on an hour-by-hour assessment of the share value.

SBL: If share value falls below 80% of the loan amount, based on a running three day average, we have a flexible process to "cure" your loan default.

ML: 1 day to cure default

SBL: 5 days to cure default