Provide clients with strategic portfolio liquidity—without selling assets or disrupting their long-term investment strategy.
If your clients want to make a major purchase or a financial emergency arises, they might be tempted to sell their investments—which may slow progress toward their key financial objectives.
To help maintain their investment portfolio while meeting their cash needs, your clients may want to take advantage of a line of credit. Clients can use a securities-based line of credit for numerous reasons, including:
A fast and flexible credit solution to provide liquidity for clients. An RBC Credit Access Line, offered by Royal Bank of Canada and RBC Bank (Georgia), N.A., is a competitive variable- or fixed-rate line of credit that allows clients to borrow against their taxable investment portfolio.
This product is designed to meet the needs of clients who may need short-term portfolio liquidity. The online application and approval process takes as little as three business days.
There are no fees to set up, maintain or cancel. And there are no penalties if the client never uses it. Clients pay nothing until they advance money from their credit line.
Your clients can open a simplified, e-signature-driven account with a minimum line size of $25,000 and can draw as little as $1,000.
Once approved, clients can access funds quickly via an online portal. Loan repayment is easy. Since variable-rate terms are interest-only, this option gives clients flexibility on when they repay loan principal. Interest rates can be fixed on outstanding balances.
Similar to a margin loan, clients may be required to deposit cash or additional securities to maintain minimum equity requirements, should the lending value of assets securing the loan decline in value. If clients are unable to maintain minimum equity requirements, securities pledged as loan collateral may be sold without prior notice.
Clients should understand these and other risks associated with securities-based lending before using RBC Credit Access Line as a credit solution.
Use RBC CreditLink to help simplify the credit process into three easy steps:
CreditLink also provides transparency in the application process, as well as when the line is live, to provide a better servicing experience for you and your clients.
Learn more about CreditLink
RBC Express Credit is a line of credit based on the value of the eligible securities in a client’s investment accounts. It allows clients to easily borrow money for purchasing additional investments or for their personal needs, without selling their investments or disrupting their investment strategy. RBC Express Credit is a margin product and it follows the same regulatory requirements.
1 RBC Credit Access Line is a securities-based, demand line of credit offered by Royal Bank of Canada and RBC Bank (Georgia), N.A., Equal Opportunity Lenders and bank affiliates of RBC Capital Markets, LLC. Subject to credit approval. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of the RBC Credit Access Line agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using RBC Credit Access Line. Considerations should be given to loan requirements, portfolio composition and diversification, time horizon, risk tolerance, portfolio performance expectations, and individual tax situations.
There are important risks associated with securities-based loans that you should consider:
RBC Credit Access Line is a non-purpose facility. The proceeds of an RBC Credit Access Line may not be used to purchase, trade, or carry margin stock or repay a margin debt that was used to purchase, trade, or carry margin stock. Royal Bank of Canada may demand repayment of all proceeds of RBC Credit Access Line advances that it has reasonable basis to believe were used to purchase or carry margin stock.
RBC Clearing & Custody a division of RBC Capital Markets, LLC, is not a bank. Where appropriate, RBC Capital Markets, LLC has entered into arrangements with Royal Bank of Canada and RBC Bank (Georgia), N.A. to help facilitate and service your RBC Credit Access Line. Neither RBC Clearing & Custody, nor its affiliates or employees provide legal, accounting or tax advice. All legal, accounting or tax decisions regarding your accounts and any transactions or investments entered into in relation to such accounts, should be made in consultation with your independent advisors. No information, including but not limited to written materials, provided by RBC Clearing & Custody or its affiliates or employees should be construed as legal, accounting or tax advice. See also RBC Credit Access Line for more information.
2 Purchasing securities on margin may not be suitable for all investors. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. Before you sign a Margin Agreement, it is important that you read and fully understand the Margin Disclosure Statement, which describes additional risks involved in trading securities on margin. See the Margin Disclosure Statement for more information.
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