Advisor Group Launches Securities-Based Lending

 

With the new tool, powered by Supernova, the firm's advisors can now source loans for clients without losing touch with the assets.

From WealthManagement.com:

Advisor Group, one of the largest independent broker/dealer networks, is rolling out a securities-based lending offering to its 10,000 advisors, providing them with the ability to source loans for clients without losing touch with the assets.

“In a time of a need, if [clients] have to look for this alternative somewhere else, them securing that somewhere else might include them needing to move the assets,” said Kristen Kimmell, executive vice president, business development, at Advisor Group.

The firm is partnering with Supernova Technology, an automated digital lending solution, to bring the capability, called Personal Credit Line. The offering allows clients to borrow against their investments without affecting the underlying value of their portfolios.

“It’s a process that’s less cumbersome than the full loan process because it’s really secured with that portfolio, so it usually is a faster process and lower cost associated with it,” Kimmell said.

In addition, there’s no cost to set up the loan and maintain it. The firm will offer competitive interest rates to be determined by some underlying factors, such as the size of the loan and value of assets the client is holding.

To read the full article, visit WealthManagement.com.