Put Your Portfolio to Work to Help Achieve Your Dreams
What if you could use your portfolio to buy a new home, cover business expenses or fund luxury purchases—while keeping your investments intact? You can now do so with a Portfolio Loan Account1 from Morgan Stanley. It’s a lending program that offers you a choice of borrowing options, using the eligible assets in your Morgan Stanley brokerage account as collateral. You can access available credit through a revolving line of credit or establish a standby letter of credit2—all on an as-needed basis. In addition, it can help you track and manage your liabilities more easily.
•Competitive rate structure. You will enjoy access to interest rates based on your total available credit, not the amount of your actual loan.
•Versatility. Use funds from your Portfolio Loan Account for virtually any purpose—except to purchase, carry or trade securities or to repay margin debt.
•Convenient loan access. With a Portfolio Loan Account in place, you can obtain additional loans and access your credit directly, without going through another application process.
•Fast, easy setup. You can start using your account in just a few days, with a simple application process that requires less documentation and paperwork than other comparable lending programs.
•Improved cash flow management. As long as you maintain sufficient collateral, you can have your payments automatically added to the balance on your variable line of credit, thus keeping your cash flow intact.
One Account for Multiple Needs
- Fulfill real estate goals. Take advantage of a real estate investment opportunity, finance a home renovation, purchase a vacation home or fund a bridge loan. A Portfolio Loan Account can deliver access to funds within a few days.
- Manage and grow your business. Access additional funds to manage day-to-day expenses and finance important purchases and investments. You can use your Portfolio Loan Account to cover payroll, purchase inventory and manage liquidity—or to finance longer-term business needs, such as equipment purchases, real estate acquisitions and business expansions. These needs can all be filled with a single consolidated loan that requires minimal documentation and fees.
- Fund significant luxury purchases. Whether you have your eye on a boat, a plane or a unique piece of art, a Portfolio Loan Account can provide you with the funds you need while maintaining the integrity of your portfolio.
- Prepare for unforeseen needs. Your Portfolio Loan Account can also serve as a flexible line of credit. Because there’s no charge for establishing and maintaining a Portfolio Loan Account,2 it could make sense to set one up so that it will be there should you need it.
The Portfolio Loan Account is a securities-based loan, which can be risky and is not suitable for all investors. Before opening a Portfolio Loan Account, you should understand the following risks:
• Morgan Stanley Bank, N.A. can call the loan at any time and for any reason.
• Sufficient collateral must be maintained to support your loan(s) and to take future advances.
• You may have to deposit additional cash and/or eligible securities on short notice.
• Some or all of your securities may be sold without prior notice in order to maintain account equity at required maintenance levels. You will not be entitled to choose the securities that will be sold. These actions may interrupt your long-term investment strategy and may result in adverse tax consequences or in additional fees being assessed.
• Morgan Stanley Bank, N.A. reserves the right not to fund any advance request due to insufficient collateral or for any other reason.
• Morgan Stanley Bank, N.A. can increase your collateral maintenance requirements at any time without notice.
1 Minimum approval amount is $250,000. Initial draw minimum is $25,001. Consult your Financial Advisor for subsequent minimum draws. Disbursements are subject to your available credit and are at the sole discretion of Morgan Stanley Bank, N.A.
2 Annual fees apply for Standby Letters of Credit, if issued. Standby Letters of Credit carry issuance fees based on the issued amount of the Letter of Credit and are due in advance. Morgan Stanley Bank, N.A. may charge additional fees if modifications are requested from the Morgan Stanley Bank, N.A. form of Letter of Credit documentation. See table for fee structure.
The Portfolio Loan Account is offered by Morgan Stanley Bank, N.A. an affiliate of Morgan Stanley & Co. Incorporated.