When it comes to making serious returns from investing, patience is the best quality to have. As most investors know, short term investments involve much more risk. Therefore, safer returns come from longer-term investments. So what happens when a situation or emergency occurs where you require a large amount of money fast? If your equity is tied up and illiquid, this can create a severe financial crunch. Thankfully, the advisors at Strategic Investments Corp. offers securities-based lending (SBL) as an option for our clients in this situation.

What is Securities-Based Lending?

Financial planner explains securities-based lending to his clientSecurities-based lending is essentially using your securities and financial holdings as collateral for a loan. Depending on the size of the loan, securities you hold of a similar value will be used in the case you are unable to repay. These loans can allow you to do virtually anything from making a purchase, covering a large expense, or truly any other use. There are several advantages to using SBL over traditional loans.

  • No need to sell securities
  • Avoids taxes on sold securities
  • Investments continue to earn
  • Faster loan approval

By using your securities as collateral, you can avoid selling your securities and therefore incurring a potentially significant tax. This method also allows your capital to continue to earn for you while you are still able to get the immediate cash you need. For those who have securities-based lending as an option, they can often get approval much easier than with traditional banks. Of course, the volatility of the markets can change the value of your collateral, so securities-based lending for short term loans is ideal.

No matter what type of unexpected expenses may pop up, having the ability to pay for them is critical. At the same time, your emergency fund shouldn’t prevent you from investing the way you’d like. For this reason, the advisors at Strategic Investments Corp. offer securities-based lending as an option which allows you to do both. Your investments remain intact, but you have access to the necessary cash flow.

How Strategic Investments Corp. Can Help You

Strategic Investments Corp. operates as a financial planner. However, our strategy more resembles how a hedge fund would run. Using a focused yet aggressive investment strategy, we protect our client’s investments while making calculated decisions that are based on increasing overall wealth. Financial planning and investing are about making your money work for you. The advisors at Strategic Investments Corp. can help you increase the value of your investments in a way that consistently produces results while also safeguarding your assets.

By offering securities-based lending as a service, we extend this asset protection past the ups and downs of the markets. SBL protects your investments from unexpected personal expenses as well. This option adds another layer of protection to your financial future.

At Strategic Investments Corp., we strive to help you reach and then surpass your financial goals. In order to do this, we offer a full suite of investment services. We specialize in taking your old financial plan and taking it to the next level. Our services include:

Safeguard Your Future with Strategic Investments Corp.

At Strategic Investments Corp., our mission is to guide our clients through their financial planning process. We want them to feel confident in their future financial security and happiness. Securities-based lending is a crucial tool in our belt. We can use it to provide you with cash flow that doe not require you to sell investments. Together, we can craft a wealth management strategy that builds upon your net worth without exposing you to undue high-risk investments. Reach out to us today at 410.312.5779 to find out how we can give your finances a tactical edge.

Investment Advisory Services offered through Independent Advisor Representatives of Cambridge Investment Research Advisors Inc, a Registered Investment Adviser Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC, to residents of: AR, CO, DC, DE, FL, GA, MD, MI, NJ, NY, NC, PA, VA, WV , Cambridge and Strategic Investments Corp. are not affiliated.