Lending & liquidity
Securities-based line of credit (SBLOC)
A revolving line of credit secured by your investments. Access cash when you need it while your portfolio stays invested and keeps working for you.
How clients use it
- Business expansion
- Cash flow gaps
- Real estate purchases
- Remodels and renovations
- Paying a large tax bill
- Covering a large or unexpected expense
Often used in place of
- Selling investments and realizing capital gains
- HELOCs
- Construction loans
- Hard money loans
- Bridge loans
- Personal loans
Pricing
How pricing works
The rate is variable and set by the bank, often as a benchmark rate plus a spread, and you typically pay interest only on what you draw.
Because the collateral is liquid and easy to value, it is often cheaper than HELOCs, construction loans, hard money, bridge, and personal loans, and can cost less than the taxes owed from selling appreciated investments.
Terms change over time, so reach out to us for current terms.
Questions
Common questions
What is a securities-based line of credit (SBLOC)?
A securities-based line of credit (SBLOC) is a revolving line of credit backed by eligible investments you already own. You borrow against the portfolio instead of selling, and you can draw, repay, and redraw while those investments stay invested as collateral. Interest is typically charged only on what you draw.
Who is the lender?
TriState Capital Bank is the lender on the securities-based line of credit (SBLOC). Bridlewood advises on whether borrowing fits your plan; we don’t issue the line.
What are the main risks?
The main risks are a rising rate and a falling portfolio. An SBLOC usually carries a variable interest rate, so your borrowing cost can go up. If the investments securing the line drop in value, you may need to add collateral or pay down the balance to keep the line in place.
Is an SBLOC better than selling investments?
Not always. It depends on taxes, interest cost, and how long you need the cash. Selling can trigger capital gains but means no loan to repay. An SBLOC keeps your portfolio invested while you access cash, but you pay interest and still carry market risk on the collateral.