Benefits & Risks
You’re responsible. We’re here to help you keep it that way.
Financing your daughter’s wedding. Expanding your business. Eliminating your child’s credit card debt. Whether it’s advancing your own life or helping those closest to you, a BriteLine is an empowering tool in your financial tool belt.
With rates below 6%* and interest-only payments, a BriteLine gives you the ability to finance things you may not have believed were otherwise possible. But it’s only at its most powerful when it’s used prudently and responsibly. That’s why we’re here to help you weigh the benefits along with the risks, guiding you every step of the way.
Easy Once you talk to your advisor, requesting a BriteLine is a matter of simply completing a short online application. No more mountains of complicated paperwork.
Accounts are pledged You cannot remove cash and/or securities from your pledged accounts without our authorization. This is a simple process with approval dependent on the amount outstanding on your BriteLine and the current value of your pledged accounts.
No fees There are no fees to set up, maintain, or cancel. And there are no penalties if you never use your BriteLine. You are only required to pay the interest monthly, provided your BriteLine is in good standing. A line of credit is in good standing when the outstanding balance is less than 70% of the value of the eligible securities held in the collateral account(s).
Potential fees from sale of securities If we are required to sell securities to settle a collateral call, this may trigger sales fees / other back-end fees from the investments that are being sold within the pledged collateral account. Supernova Lending is in no way responsible for these fees. Additionally, there may be tax consequences to the sale.
Low rates BriteLines are typically offered at some of the most competitive rates you will find. Currently, our best rates are less than 5%*.
Floating rate lines A BriteLine is a floating rate line of credit that is tied to the 1-month LIBOR rate. This rate resets weekly and is subject to change, which means, accordingly, your BriteLine rate is also subject to change.
Flexible Each month, your only obligation is to pay the interest due. You, the borrower, determines when to pay down the principal. You can pay back the loan on your own terms if it is in good standing and there has not otherwise been a collateral call.
Collateral requirement can change We have the right to change the amount of collateral required at any time without contacting you first.
Ready when you are We know things come up in life at a moment’s notice and that’s why a BriteLine is there for you when you need it. Once approved, access to your funds is quick and easy.
Demand facilities A BriteLine is payable on demand at any time and for any reason.
Variety of uses Once you have established your BriteLine, you can use it to meet many of your financing needs, from buying a car to paying off unexpected expenses to financing your small business. Each requested draw is subject to approval. See how a BriteLine compares to traditional loans
No purchase of additional securities A BriteLine can be used to finance most anything EXCEPT the purchase of additional stocks, bonds, ETF’s, etc. It also cannot be used to pay off a debt, such as a margin loan, that was already used to purchase additional securities.
No-hassle account monitoring You have the ability to easily keep tabs on your BriteLine by logging into your account through our website.
Not obligated to extend credit Approval is required for draws on your BriteLine. Supernova has the right to not extend credit at any time and for any reason.
Keep your investments cooking You can use your assets as collateral for the cash you need. This provides an alternative source of liquidity without disrupting your investment strategies.
Market fluctuations If the market falls, your assets may lose value and require you to deposit additional securities and/or cash in your pledged investment account or pay down the line. This is defined as a collateral call and could disrupt your investment strategy.
No tax penalty Have a short-term need but don’t want to sell assets and trigger capital gains? By borrowing to address these needs, you can avoid the many tax consequences that come from selling down assets.
Potential tax consequences If we are forced to sell or otherwise liquidate your securities, there may be tax or other consequences. We have the right to sell any securities or other investments you’re holding as collateral, and unless required by law, can do so without informing you first.
* As of July 1, 2019, rates vary from 4.65% to 6.15%. Rates are variable and subject to change. Rate is based on 1-month LIBOR interest rates that change weekly.
All information on this site © 2018 Supernova Lending, unless otherwise stated. All rights reserved.