A Securities Based Loan is NOT a margin loan, and has significant advantages over a conventional margin loan.
Below are several of the advantages of a Securities Based Loan line of credit vs a standard margin loan:
Below are several of the advantages of a Securities Based Loan line of credit vs a standard margin loan:
- Much higher LTVs
- More flexibility in structure of loan
- More variety of possible collateral
- Can protect against a call
- Lender is much more flexible in the event of a call
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