Securities-based lending

Key Points

  • Securities-based lending can provide a flexible lending solution at compelling interest rates that uses eligible non-retirement investments as collateral.
  • Access liquidity while keeping your investment portfolio and strategy intact.
  • Borrowers should consider the risks unique to securities-based lending.

Access cash without selling investments at inopportune times

Your Ameriprise financial advisor helps you achieve your financial goals by understanding your goals and priorities. They also realize that life can present you with opportunities or challenges that may cause you to adapt. By considering your unique needs and situation, your Ameriprise financial advisor can help you respond when you have a short-term liquidity need. 

With an Ameriprise® Preferred Line of Credit, Offered through Goldman Sachs Select, Ameriprise® Preferred Loan, Offered through Goldman Sachs Select, or a margin loan, you can use a portion of your non-retirement investment portfolio as collateral for cost-effective liquidity. Your Ameriprise financial advisor will help you understand the advantages, limitations and risks of securities-based lending.

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 How does securities-based lending work to keep my investment strategy intact while offering strategic liquidity? If significant and unexpected expenses arise, would securities-based lending be a good solution for me?

When you’re ready to reach out to an Ameriprise financial advisor for a complimentary initial consultation, consider bringing these questions to your meeting.

Whether you’re in need of bridge financing, expanding your small business or covering the expenses of an unexpected emergency, securities-based lending can be a powerful tool for managing short-term liquidity needs.

Use securities-based lending for:

  • Real estate or construction bridge financing
  • Short-term financing of home improvements and other major life expenses (weddings, luxury purchases, etc.)
  • Cash flow to cover small business or short-term living expenses
  • Managing tax obligations
  • An unexpected emergency

Ameriprise Preferred Line of Credit, Offered through Goldman Sachs Select

Details

  • Available on a variety of discretionary and non-discretionary non-retirement accounts
  • Variable interest rates
  • Interest only payments, payable monthly. No maturity date, and principal can be repaid at any time without penalty
  • Proceeds cannot be used to purchase, carry or trade margin stock.
  • Minimum credit line size is $75,000; with advances starting at $2,500.
  • No application, origination or annual fees; credit check required during underwriting

Risks

An Ameriprise Preferred Line of Credit carries certain risks. They include, but are not limited to:

  • Interest rates are variable and may rise, increasing the cost of borrowing
  • Market downturns or possible tax implications may cause the value of pledged assets to decline which may require clients to pledge additional collateral
  • Pledged assets can be sold by the lender (with or without advance notice to the client) to meet maintenance calls at the lender’s discretion
  • You will not be entitled to an extension of time to meet maintenance calls should they be required
  • The lender reserves the right to change maintenance requirements and can demand repayment of the principal amount and interest outstanding, at any time and in its sole discretion
  • Please contact your advisor to receive a copy of the Ameriprise Preferred Line of Credit Product Guide and FAQ for further details and risks

Additional information

  • Ameriprise Preferred Line of Credit lending requirements are set by the lender

  • An Ameriprise Preferred Line of Credit can be supported by multiple accounts and/or borrowers, pledgors, and guarantors

Ameriprise Preferred Line of Credit terms and policies are subject to change.

Ameriprise Preferred Loan, Offered through Goldman Sachs Select

Details

  • Available on a variety of discretionary and nondiscretionary non-retirement accounts
  • Fixed interest rates; terms for periods from 1 to 5 years
  • Fixed monthly interest payments throughout the term of the loan. Principal repayment due on maturity date
  • Proceeds cannot be used to purchase, carry or trade margin stock
  • Loan amount can range between $75,000 (minimum) and $25M (maximum); and is limited to a one-time request for funding within 30 days of account opening
  • There are no application, origination or annual fees; See additional information about prepayment premiums in the “Risks” section below”
  • Ameriprise Preferred Loans are not available in all states. Contact your Ameriprise financial advisor for details

Risks

An Ameriprise Preferred Loan carries certain risks. They include, but are not limited to:

  • Prepayment of part or all of the principal of an Ameriprise Preferred Loan before the final monthly statement date immediately preceding the maturity date is subject to a prepayment premium regardless of the reason that the Loan was prepaid. The prepayment premium is calculated using multiple factors including, but not limited to, the Loan principal amount being prepaid, interest rate fluctuation and the loss and/or cost to the Lender in connection with the Loan principal amount being prepaid. The prepayment premium can be substantial.
  • Loans are intended to be held to maturity; if interest rates decline after the one-time borrowing, clients may be locked into paying a higher interest rate versus current market rates
  • Market downturns or possible tax implications may cause the value of pledged assets to decline which may require clients to pledge additional collateral
  • If you meet a maintenance call within the specified timeframe, you can choose which securities are sold. If not, Lender will direct that securities or other assets pledged as collateral are sold to meet a maintenance call. Loan principal paid in whole or in part to meet a maintenance call prior to the end of the original term of the loan is subject to a Prepayment Premium.
  • There may be adverse tax implications if pledged assets are sold or otherwise liquidated by the Lender.
  • You will not be entitled to an extension of time to meet maintenance calls
  • The lender reserves the right to change maintenance requirements at any time
  • Please contact your advisor to receive a copy of the Ameriprise Preferred Loan Product Guide and FAQ for further details and risks

Additional information

  • Ameriprise Preferred Loan lending requirements are set by the lender
  • An Ameriprise Preferred Loan can be supported by multiple accounts and/or borrowers

Ameriprise Preferred Loan terms and policies are subject to change.

Margin lending

Details

  • Available on non-retirement Ameriprise Brokerage or SPS Advantage Accounts
  • Convenient, easily accessible lending solution at competitive interest rates
  • Proceeds can be used to buy additional securities (i.e. stocks, bonds, etc.) or as a source of cash
  • No closing costs or application fees and no set repayment schedule
  • Not reflected on credit reports
  • Margin interest can be tax deductible, but may be limited to your net investment income (consult your tax advisor)

Risks

Margin loans through Ameriprise Financial carry certain risk. They include, but are not limited to:

  • Interest rates may rise, increasing the cost of borrowing
  • You can lose more money than you deposit in a margin account
  • Ameriprise can sell securities (with or without advance notice to the client) to meet margin calls at our discretion
  • You are not entitled to an extension of time to meet any margin calls
  • Ameriprise reserves the right to change margin maintenance requirements at any time
  • Please review Important information about borrowing on margin (Form 200252) for more information about the risks

Additional information

  • Margin lending requirements are set by Ameriprise Financial in accordance with guidance from The Federal Reserve and FINRA
  • The minimum equity required to open a margin account is $2,000

Margin loan terms and policies are subject to change

Take the next step

To find out more about the Ameriprise Preferred Line of Credit or Loan or margin lending, contact your Ameriprise financial advisor or locate an advisor near you.

related information

Securities-based lending brochure

Lending solutions guide

Learn more about investments and risks

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Background and qualification information is available at FINRA's BrokerCheck website.

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Margin Lending
Margin loans through Ameriprise Financial carry certain risks and are not appropriate for all investors. They include, but are not limited to: potential to increase investment losses, clients can lose more money than they deposit in a margin account, risk that clients could be forced to sell investments if maintenance requirements are not met, we can sell securities (with or without advance notice to the client) to meet margin calls at our discretion, and clients are not entitled to an extension of time to meet any margin calls. Ameriprise reserves the right to change margin maintenance requirements at any time
Margin lending and brokerage clearing services provided by American Enterprise Investment Services, Inc. Member FINRA and SIPC, a subsidiary of Ameriprise Financial, Inc.
Investment advisory products and services are made available through Ameriprise Financial Services LLC, a registered investment adviser.
Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
Ameriprise® Preferred Line of Credit and Loan, Offered through Goldman Sachs Select
Ameriprise® Preferred Lines of Credit and Loans are offered by Ameriprise Bank, FSB and the Salt Lake City Branch of Goldman Sachs Bank USA (GS Bank) as co-lenders or sole lender, as applicable. Margin loans are offered exclusively through Ameriprise Financial Services, LLC as sole lender. Ameriprise Bank, FSB and GS Bank are not affiliated.
Loans collateralized by securities may not be appropriate for all parties and carry a number of risks, including the risk of a market downturn, tax implications if pledged securities are liquidated, and the potential fluctuation in interest rates. If the value of pledged securities declines below certain levels, the client (with assistance from their advisor) may be required to pledge additional collateral, rebalance existing collateral through trading, or pay down the loan in order to avoid the forced sale of securities to meet collateral maintenance requirements. Subject to applicable law, pledged securities may be sold with or without advance notice to the client to cover the deficiency at the bank’s sole discretion. Clients should understand the possible adverse tax consequences associated with the sale or pledge of their securities when considering whether a securities-based loan is appropriate for them.
Credit qualifications and collateral are subject to approval. Additional terms and conditions apply.
Please review the Loan and Security Agreement and all Ameriprise Preferred Line of Credit and Loan documents for the terms and conditions governing your line of credit or loan.
The proceeds from Ameriprise Preferred Lines of Credit and Loans may not be used to purchase, carry or trade margin stock, or to pay down any existing margin loan balance and cannot be deposited with Ameriprise Financial Inc. or any of its subsidiaries, either directly or indirectly, under any circumstances, except into Ameriprise Bank, FSB deposit accounts. The proceeds from Ameriprise Preferred Lines of Credit and Loans may also be deposited into bank deposit accounts held at GS Bank, or other depository institutions.
Prepayment of part or all of the principal of an Ameriprise Preferred Loan (“Loan”) before the final monthly statement date immediately preceding the maturity date is subject to a prepayment premium regardless of the reason that the Loan was prepaid. The prepayment premium is calculated using multiple factors including, but not limited to, the Loan principal amount being prepaid, interest rate fluctuation and the loss and/or cost to the Lender in connection with the Loan principal amount being prepaid. The prepayment premium can be substantial.
Neither Ameriprise Bank, FSB nor AFS financial advisors offer to give legal or tax advice. For specific legal or tax matters, clients should consult with their own legal and/or tax advisors.
Goldman Sachs does not provide legal, tax or accounting advice. This content is for marketing purposes only and is not a substitute for individualized professional advice. Individuals should consult their own tax advisor for matters specific to their own taxes and nothing communicated to you herein should be considered tax advice.
Ameriprise Bank, FSB provides deposit, lending, and personal trust products and services to its customers, including clients of Ameriprise Financial Services, LLC (AFS). Ameriprise Bank, FSB and AFS are subsidiaries of Ameriprise Financial, Inc. AFS financial advisors may receive compensation for selling bank products. Ameriprise Bank, FSB. Member FDIC.
Goldman Sachs Private Bank Select® is a business of Goldman Sachs Bank USA, a wholly-owned subsidiary of The Goldman Sachs Group, Inc. Loans and deposit products are provided by Goldman Sachs Bank USA, Salt Lake City Branch. Member FDIC. Goldman Sachs Private Bank Select is a registered trademark of Goldman Sachs & Co. LLC.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
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