Securities Loan Facility
If you need cash, but all your funds are tied up in investments that you would prefer to leave untouched, then a securities loan facility may be what you are looking for.
We offer credit at a highly competitive rate, using your Bank ten Cate & Cie investment portfolio as collateral.
A securities loan facility offers a variable amount of credit for an indefinite period. This highly flexible facility has a number of major advantages over traditional credit facilities and mortgage loans:
- It is available immediately without a great deal of paperwork
- The term of the credit is unlimited, provided that sufficient collateral is available
- The credit can be drawn and repaid at any time
- You only pay interest on the credit that you actually draw
- Available at a competitive rate
- No additional fees (e.g. policy fees, commission etc)
The credit limit is set by the bank on a daily basis, depending on the collateral value of the associated investment portfolio, and is reduced by any margin requirements. The credit provided under a securities loan facility is dependent on the marketability and spread of the underlying financial instruments.
The interest rate charged by Bank ten Cate & Cie is the official European Central Bank rate (minimum bid rate) plus a mark-up of 2.95%.
It is important to note that making use of a securities loan facility will raise the risk profile of your portfolio.
If you would like more information on the options available, please contact your private banker or investment adviser.