Issue 2 - June 2007
LoanAdvance® is a lending solution that allows you to expand your role as an investment professional and make you an instrumental force in multiple aspects of your clients’ financial lives. It gives you the tools necessary to support both sides of clients’ balance sheets, increasing the likelihood that they will entrust additional assets to you, and expanding the scope of your relationship.
Managed Accounts and LoanAdvance: What You Need to Know
This securities-based consumer lending tool offers your clients access to credit lines. When clients require liquiditywhether to fund college, renovate their homes, or even expand their businessesLoanAdvance provides an easy, convenient way to free up funds for most business and personal reasons, with the exception of the purchase of securities. LoanAdvance was recently enhanced to leverage assets held in managed accounts as collateral for a loan. The Boston-based research firm TowerGroup estimates that separately managed account assets (SMAs) will hit the trillion-dollar mark this year. Chances are that a substantial number of your clients’ portfolios are structured as SMAs.
"LoanAdvance provides an easy, convenient way to free up funds for most business and personal reasons…"In addition to broadening your product arsenal, LoanAdvance facilitates streamlined, yet comprehensive, money managementas long as the equity and collateral remain at an acceptable level. Portfolios may be rebalanced in clients’ existing managed accounts, even though they have been pledged as collateral for their loans. LoanAdvance for managed accounts provides the opportunity to help you meet your clients’ liquidity and lending needs without having to liquidate securities.
To extend the reach and value of your services, LoanAdvance is now also available to clients domiciled in certain areas outside the United States. However certain restrictions vary by state. For additional detailed information about LoanAdvance and the new managed accounts enhancement, contact your home office today.
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