Nationwide launches industry-leading securities-backed lending cost comparison tool
Securities-backed lending (SBL) sales have grown by 40% over the last three years1. With the surge in sales, financial professionals are seeking more training and marketing support to help clients understand how to access liquidity by leveraging their investment portfolio as collateral. Nationwide’s launch of an innovative cost comparison calculator helps demonstrate the value of SBL solutions for both financial professionals and their clients, building on the way Nationwide offers simplicity in the SBL space with streamlined, fully digital end-to-end solutions.
How it works
The calculator provides quick side-by-side comparisons for financial professionals looking to guide clients to smart solutions for cash, whether they are seeking a way to pay for an unexpected expense, a business opportunity or a personal goal. After inputting the dollar amount needed and a few details regarding tax filing status and adjusted gross income (AGI), the calculator illustrates three possible scenarios: liquidating assets, a home equity line of credit (HELOC) and a securities-backed line of credit (SBLOC). The tool breaks down which option is the most efficient and provides the most cost savings and includes a free, client-friendly, printable and savable report.
“This tool is the first of its kind in the industry, and we’re thrilled to be offering it to all financial professionals in the market,” said Debra Griffin, vice president of Nationwide SBL. “Nationwide is known for delivering industry-leading education and training, and our calculator is just another example of how we’re supporting our financial professionals by helping them simplify complex topics to meet their clients’ needs and provide additional value to the relationship.”
About Nationwide Smart Credit
Nationwide’s securities-backed line of credit, Nationwide Smart CreditSM, allows customers to avoid negative tax consequences when they need cash2, making the product a strategic alternative to liquidating assets, which could trigger capital gains taxes2. Smart Credit’s competitive minimum line amount of $25,000 opens access to more people looking to leverage this solution.
Smart Credit offers simplicity in the SBL space with a streamlined, fully digital end-to-end solution, eliminating the lengthy process and paperwork typically associated with SBL products3. Smart Credit also delivers faster speed to loan, with line requests processed in as little as hours or days versus weeks. The capital cost comparison calculator further simplifies the process with a quick and easy way to evaluate options when clients need to tap into the value of their investment portfolio.
Financial professionals can access Nationwide’s cost comparison calculator by visiting https://nationwidefinancial.com/capital-cost-comparison/sbl-form. Financial professionals interested in Nationwide Smart Credit can contact the sales team at 1-888-543-9122, email@example.com or by visiting www.nationwidefinancial.com/smartcredit.
1 Supernova TechnologyTM 2019-2022
2 Securities-backed lines of credit may not be appropriate for all parties and carry a number of risks, including but not limited to the risk of a market downturn, tax implications if pledged securities are liquidated, and the potential increase in interest rates. If the value of pledged securities drops below certain levels, parties may be required to pay down the line of credit and/or pledge additional securities. These risks and whether a securities-backed line of credit is appropriate should be considered before proceeding. Nationwide SBL, LLC, is not a FINRA-registered Broker-Dealer nor an SEC Registered Investment Advisor. This tool does not constitute investment advice. Please consult your investment and tax advisor(s) before establishing a securities-backed line of credit.
3This assumes fully integrated solution, which allows for real-time inquiry and pull of client and collateral account data. This makes the application and loan agreement process run faster and more seamlessly than lower levels of integration. Fully integrated solutions to activate collateral account lockdown and e-signature of the collateral account control agreement streamlines the underwriting process for decisioning lines of credit and setting approved lines live.
The purpose of a Nationwide Smart Credit line of credit must be for personal, family or household purposes and not for securities investments or to purchase or carry margin securities, which include: (1) stocks that are registered on a national securities exchange, or any over-the-counter security designated for trading in the national market system; (2) debt securities (bonds) that are convertible into margin stock; and (3) shares of most mutual funds.
California: Loans made or arranged pursuant to a California Lenders Law License. Delaware: Nationwide SBL is licensed by the Delaware State Bank CCL commissioner to engage in business in this State under license number 035414, expires 12/31/2022. Maryland: License Number 03-2423. Oregon: License number 1804109. Rhode Island: Rhode Island Licensed Lender. Washington: License number CL-1804109.
Not available in Mississippi, Montana, Nevada, and Vermont.
Nationwide SBL, LLC dba Nationwide Smart Credit (NMLS): 1804109 NMLS Consumer Access: https://www.nmlsconsumeraccess.org