Who is Leader Bank?

Founded in 2002, Leader Bank, N.A. is a Massachusetts-based entrepreneurial financial institution that approaches banking differently. The core tenets of Leader Bank include client service, exemplary products, and technology innovation to meet the needs of its clients.

True to its commitment to innovation, Leader Bank recently partnered with Supernova Technologies to build a digital, streamlined securities-based loan offering called the Leader Bank Power Line for independent advisors enabling their clients to borrow against the value of investment assets.

What is the Leader Bank Power Line?

The Leader Bank Power Line is a securities-based lending solution (SBL) which is a flexible line of credit against the value of an investment portfolio. This credit line allows clients to satisfy a short-term cash need while keeping their long-term investment strategy intact, minimizing potential tax liabilities from selling securities.

As Financial Advisors, a Leader Bank Power Line allows you to provide balanced wealth management supporting both sides of your client’s balance sheet.  This approach to holistic financial guidance has been proven to strengthen trust and produce long-lasting client relationships.

How are Clients using Securities-Based Loans?

A securities-based loan can be used for most personal or business needs1…

      • Real Estate (vacation homes, investment properties, bridge loans to longer-              term fixed financing)*
      • Personal property (automobiles, boats, jewelry)
      • Tax payments
      • Home improvements or repairs
      • Education expenses
      • Consolidate fragmented, high-interest debt
      • Emergency expenses (medical, disaster recovery)
      • Business working capital
      • Business expansion

* Over 50% of loan balances within Leader Bank's SBL business are used for Real Estate purposes, which is a traditional use of SBL proceeds.

What are some Client Benefits of the Leader Bank Power Line?

    • Avoid selling investments. Maintain investment strategy and defer potential tax          liabilities.
    • Lower interest rates than traditional loan products.
    • Quick access to cash. Once approved, which typically takes 1-2 business days,          funds can be accessed easily by ACH or wire.
    • Streamlined experience. Simple online application (~5 minutes to complete) with no documents typically required; access online any time to request draws or make        payments.
    • Flexible terms. No amortization or maturity, and interest can be capitalized into the      credit line.2
    • No fees. Free to set up and keep open; interest paid only on drawn balances.

What are some Advisor Benefits of the Leader Bank Power Line?

    • Strengthen client relationships and attract new assets as a trusted advisor              providing comprehensive financial guidance.
    • Retain assets under management by helping clients secure liquidity without                having to sell securities and withdraw cash.
    • Digital access to oversee and manage a client’s credit line status.

How Does a Securities-Based Loan Compare to a Traditional Mortgage?

Advisor Resources

Webinar Slides

Webinar Slides

 

Webinar Recording

 

password WCM_2024

Leader Bank Power Line Fact Sheet

Leader Bank Contact Sheet

Interest Rate Grid

Get Started Guide

How Do I Get Started

To begin offering your clients securities-based loans, please send an email to planning@wealthcarecapital.com indicating your interest to register.

You will receive an email from Leader Bank inviting you to register.  Once registered, you may begin initiating credit line proposals and applications for your clients.

Click here for a guide on how to get started by initiating a credit line proposal and application.  You may also contact the Leader Bank Solutions Team at 844-807-6937 for personalized support.

 

The Leader Bank Power Line™ is currently available to financial advisors using Fidelity Institutional for clearing and custody services. Securities-based lines of credit carry certain risks that should be carefully considered to ensure this product is right for your clients:

A reduction in the market value of pledged collateral may trigger a maintenance call, which could require the pledge of additional eligible collateral, the repayment of borrowed funds, or the potential sale of pledged securities requested at the Bank’s discretion. Such sales may carry adverse tax or other consequences.

Leader Bank may modify the collateral requirements at any time without prior notice.

The Leader Bank Power Line™ is an uncommitted demand facility, which means the Bank may require full or partial repayment at any time or elect not to advance funds.

 

1 Power LineTM proceeds may not be used to purchase securities or to repay a margin loan that was used to purchase securities. Leader Bank, N.A. cannot provide tax advice concerning the legal, investment or tax consequences of a given transaction. Please consult with your financial or tax advisor about your particular circumstances before making any investment or financial decisions. To ensure compliance with requirements under Treasury Department Circular 230, we inform you that the contents of this publication are not intended or written to be used, and may not be used, for the purpose of (i) avoiding U.S. federal tax penalties or (ii) promoting, marketing, or recommending to another party any matter addressed herein. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax adviser.

2 Capitalizing interest means that any billed interest not paid by the due date will be automatically paid by drawing on the Power LineTM, adding to the outstanding principal balance.  Borrowers may choose to pay interest without capitalizing their payments and can prepay their line balance at any time without penalty.

Banking products and services are offered through Leader Bank, N.A., Member FDIC.

The interest rate market data is the property of Chicago Mercantile Exchange Inc. or its licensors as applicable. All rights reserved, or otherwise licensed by Chicago Mercantile Exchange Inc.

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