Facts & FAQs

Line Amounts Available

$60,000 – $2,000,000*

* Customized pricing available for line amounts greater than $2,000,000

Advisor Pricing1

Interest rates of

4.65% – 6.15%3

Disclosures: 1. Daily rates in effect as of July 1, 2019. 2. Annual percentage rate (APR) of 4.71%. This APR will vary based on 1-month LIBOR-based interest rates that change weekly. 3. Annual percentage rate (APR) of 6.23%. This APR will vary based on 1-month LIBOR-based interest rates that change weekly.

Advantages

No Cost to Set Up

Pay only interest on your line. We can arrange for monthly automatic withdrawals.

No ongoing fees

We will not charge you any fees to keep your line open even if you never draw on the line.

Interest-only payments

You are only required to pay the interest monthly, provided your BriteLine is in good standing.

Payment Methods

ACH

Deducted monthly from an outside checking account

Check

Mail a check from an outside account

Cap-and-Roll

Draw from the BriteLine to pay interest (see Benefits and Risks)

Frequently Asked Questions

What is a BriteLine? A BriteLine allows you to use your taxable investment accounts as collateral for a demand, variable rate line of credit. Proceeds from the line can be used for a number of financing needs with the exception of buying additional securities and paying off existing debt that was from the purchase of securities.
What are the advantages of a BriteLine? A BriteLine offers highly competitive pricing and access to liquidity. You can utilize multiple investment accounts as collateral and combine them into one line. There are no fees associated with the line and you are only required to pay the interest monthly, provided your BriteLine is in good standing and there has not otherwise been a collateral call.

How do I know if my BriteLine is in good standing? A line of credit is in good standing when the outstanding balance is less than 70% of the current value of the eligible securities held in the collateral account(s).

What types of accounts can be pledged?
  • Single name taxable accounts
  • Joint name taxable accounts (JTWROS, TIC) can be pledged if the owners intend to apply for joint credit and all owners on the account will be borrowers on the line.
  • Grantor revocable living trust accounts
What types of assets are eligible to be pledged as collateral?
  • Exchange listed equities, unit investment trusts, mutual funds, exchange traded funds priced over $4.00 per share
  • Investment-grade corporate and municipal bonds
  • U.S. government bonds, including zero coupon bonds
What types of accounts cannot be pledged?
  • Retirement accounts
  • UGMA/UTMA and 529 accounts
  • Business entity accounts
  • Estate accounts
  • Irrevocable trust accounts
  • Guardian and Conservator accounts
  • Accounts for individuals and businesses residing outside of the United States
  • Accounts pledged as collateral to a creditor/lender
Are fixed rates available? No.
Is there a minimum line of credit size? Yes. Our minimum line of credit is $60,000, which means borrowers must pledge at least $120,000 of eligible collateral in a taxable account.

Is there a minimum initial draw?

The minimum initial draw is $60,000. After the minimum initial draw has been made on your BriteLine, all subsequent minimum draws are $1,000.

When do BriteLines mature? They are open-ended, revolving lines of credit. There is no maturity date because a BriteLine is a demand facility, meaning it can be called at any time and for any reason.
Will I receive a monthly statement? Yes. You will receive a monthly email from Supernova when your statement is available. The email will include a link to access your account where you can view the current loan advance and payment activity, as well as your current outstanding balance, daily interest rate, and interest charges.
How are monthly interest payments made? Monthly interest payments can be made by ACH, check or drawing from your BriteLine. You can set up automatic monthly ACH debits from your designated bank deposit account by making this election under “payment preferences” while logged into your BriteLine account. All payments by check will be charged a $10 fee. If you want to pay by drawing from your BriteLine, you can make this election under “payment preferences” while logged into your BriteLine account. This payment method allows you to draw on your BriteLine to pay interest, which will increase your outstanding balance and lead to compounding interest.
What if I’m interested in a BriteLine but currently have a margin loan in place against the investment account? The margin loan must be paid off and closed before you set up a BriteLine.
What are the typical BriteLine advance rates? You can typically borrow between 0% and 50% of the current value of a diversified, taxable investment account(s) portfolio. Once your BriteLine is set up, we recommend you try to never borrow more than half of that, unless it is for a short-term need after discussing with your advisor. See our Stoplight System for details.
How can loan principal be repaid? Loan principal can be repaid at any time in any amount via wire transfer, ACH or check. There are no prepayment penalties.
How do I get a BriteLine request started? Visit our BriteLine Process page to learn more.

213 W Institute Pl., Suite 408
Chicago, IL 60610
(312) 470-6280

Supernova Lending, LLC is a subsidiary of Supernova Companies, LLC. Nationwide Multistate Licensing System (NMLS): 1543400.

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