Benefits of an SBLOC
An SBLOC lets you borrow money using securities — such as stocks, bonds or mutual funds — as collateral. You can draw funds from your line of credit, pay it back and draw funds again. While similar in many ways to a home equity line of credit (HELOC), using an SBLOC1 to reach your financial goals comes with specific advantages.
No disruption to your investment strategy
Because you’re borrowing against your securities rather than selling them, you avoid triggering capital gains taxes2 and can continue to benefit from any appreciation in the value of your investments.
Competitive rates
SBLOCs typically offer lower interest rates than personal loans or credit cards. The rates are often variable and tied to a benchmark, such as the prime rate, making them more affordable for borrowers with significant assets.
Potential tax benefits
Interest paid on an SBLOC may be taxdeductible2, depending on how you use the proceeds. Consult with a tax advisor for personalized advice that applies to your situation.
Meet one-on-one with an advisor
Synovus Private Wealth Advisors can walk you through the advantages and risks of borrowing against your securities3.
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Frequently asked questions
How does an SBLOC work?
The process for getting a securities-backed line of credit is straightforward. In fact, for some borrowers it can close in as little as 3 to 5 days. Each step is designed to ensure that your borrowing needs are met while maintaining the value of your investment portfolio. Learn more
How much can I borrow with an SBLOC?
Synovus will assess the value of your portfolio and establish a line of credit based on a percentage of that value — often between 50% and 95%.3 If you don’t already have an investment account with Synovus, your advisor can help you start the application process.
How quickly do I have to repay the principal on the loan?
If you choose our interest-only payment option4 you must begin making monthly payments on the amount borrowed once you draw funds from the line of credit. You can pay the outstanding principal at your discretion, however. As long as your account remains in good standing and the value of your securities stays above a certain threshold, you can continue to borrow and repay as needed.
What happens if my portfolio declines in value?
Synovus will regularly monitor the value of your collateral. If the value of your securities drops and it can no longer support your line of credit, we’ll contact you. You may need to deposit additional funds or securities or repay the loan.3
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Important disclosure information
All loans and lines of credit are subject to credit approval.
Refer to Private Wealth Program Terms for specific benefits, pricing and rates.
- Subject to credit approval. Eligible securities must be held in a Synovus brokerage or trust account. Back
- Consult with your tax advisor. Back
- Investment products and services provided by Synovus are offered through Synovus Securities, Inc (“SSI”), Synovus Trust Company, N.A. (“STC”) and Creative Financial Group, a division of SSI. Trust services for Synovus are provided by Synovus Trust Company, N.A. Synovus Securities, Inc. is a registered broker/ dealer, member FINRA/SIPC and an SEC Registered Investment Advisor. Investment products and services are not FDIC insured, are not deposits of or other obligations of Synovus Bank, are not guaranteed by Synovus Bank and involve investment risk, including possible loss of principal amount invested. Synovus Securities, Inc. is a subsidiary of Synovus Financial Corp and an affiliate of Synovus Bank and Synovus Trust. Synovus Trust Company, N.A. is a subsidiary of Synovus Bank. You can obtain more information about Synovus Securities, Inc. and its Registered Representatives by accessing BrokerCheck. Back
- Customers can select between two payment options: 1) Interest only: an amount equal to the finance charge shown on the periodic statement with the entire outstanding balance due on the maturity date or 2) 2% of the new balance as shown on the periodic statement with the entire outstanding balance due on the maturity date. Back