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What a Securities Backed
Line of Credit Is

Securities Based Financing is funding that utilizes securities (stocks, bonds, mutual funds) as collateral. It’s a revolving line of credit– so, as you pay off what you have drawn, the line is replenished. SBF provides capital that is easily accessible and can be used for things such as real estate, purchasing a car, purchasing personal property, business investments, and stock investments.  *Great For Real Estate Investors*


Benefits Include:

  • Revolving Line Of Credit
  • Simple Interest Rates
  • Can Be Used In Tandem With Your Stocks And Other Securities
  • Zero Account Management Fees For Your Stock investments
  • Does Not Appear On Your Personal Credit
  • Fast Approvals
  • Fast Funding (8 – 10 Days)


Loan Amounts

$100,000 – $5,000,000

Loan Terms


Interest Rates

1.9% – 6.5%


8 – 10 days

How Securities Based Financing Works

Securities Based Financing has primarily grown in popularity over the years because it’s easier to acquire than traditional loans. SBF requires less documentation and can give applicants the required cash in just a few days. However, it’s also a reasonably cheap option– SBF offers lower rates than lines of credit, home equity, and even a second mortgage. The rate you’ll be charged is based around the 30-day London Inter-Bank Offered Rate. Loans such as SBF can be used to cover anything from business startups to vacations, acquisitions, tax payments, franchise purchases and luxury goods. SBF loans are an excellent choice if you need a large amount of cash in a short amount of time.

Ideal Annual Revenue

None is required

Ideal Credit Score

Credit is not a factor

Time In Business

None is required

The Three Cs for Qualifying

When you’re looking into loans, Finance Factory looks at the Three Cs: Credit, Cash flow, and Collateral. You’ll want to have a credit score between 600 and 800– with an ideal score of 680+. But we’ll also look for a minimum account balance of $1,000 – $5,000 for monthly cash flow (but also look at tax returns, profit, and annual revenue). As for collateral, we prioritize unsecured funding; however, collateral is just one option. As long as you have one of the Three Cs, you’ll qualify for a loan.


Finance Factory Helps You With Securities Based Financing

Interested in finding funding for your business? Finance Factory would love to help! If you’re looking for securities based financing, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!