Securities-Backed Lines of Credit

Access liquidity aligned with your investment plan

Liquidity options for your financing needs

Through our securities-backed lines of credit services, we provide a flexible and efficient way for you to remain invested and keep your asset allocation strategy in place while still having easy access to the liquidity you need.

Securities-backed lines of credit at a glance

Optimize funding with an Easy Access Line of Credit

Flexible

Evergreen lines of credit with the ability to lock in up to three fixed-rate tranches with no setup charge.

Efficient

A fully streamlined digital process gives you access to liquidity without unnecessary obstacles.

Personal

A partnership that understands your unique financial needs in order to leverage all of our private banking services.

Securities-backed lines of credit benefits

Versatile liquidity for a variety of needs

Whether you have a specific, near-term need or want flexibility for future goals, securities-backed lending through First Citizens Easy Access Line of Credit complements and supports your overall investment plan.

  • Debt consolidation
  • Real estate financing
  • Education or wedding expenses
  • Home renovation projects
  • Medical expenses
  • Tax obligations
  • General liquidity needs

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Securities-Backed Lines of Credit FAQ

People often ask us

A securities-backed line of credit, or SBLOC, is a line of credit that allows you to borrow money using your own investment portfolio as collateral, so you can remain invested and keep your allocation strategy in place while accessing liquidity for a variety of near- and long-term needs.

Interest payments on a securities-backed line of credit, or SBLOC, could be tax deductible depending on a few key factors, such as the structure of the SBLOC and how the proceeds are used. You should consult an accountant or tax advisor for help with your specific situation.

A primary difference between a home equity line of credit, or HELOC, and a securities-backed line of credit, or SBLOC, is the collateral used. In a HELOC, the collateral is the market value of your home. In an SBLOC, the collateral is the market value of the assets in your investment portfolio.

Another notable difference between a HELOC and an SBLOC is the draw period. An SBLOC is an open line of credit, which means you can draw from it at any time. However, a HELOC typically has an established draw period. Once this period ends, you no longer have the ability to borrow additional funds.

Margin loans are offered through brokerage firms against the value of securities in your portfolio. You can use them to buy additional investments or meet other short-term liquidity needs.

Securities-backed lines of credit, or SBLOCs, are offered through a bank to borrow against the value of your portfolio, which is held in a separate brokerage account. These lines may not be used for purchasing additional securities or depositing into a brokerage account. Instead, these lines are typically used to span a gap between large transactions or to fulfill a short-term cash obligation without decreasing the value of your portfolio.

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The information provided should not be considered as tax or legal advice. Please consult with your tax advisor.

Your investments in securities, annuities and insurance are not insured by the FDIC or any other federal government agency and may lose value. They are not a deposit or other obligation of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results. Asset allocation, dollar cost averaging and diversification do not guarantee a profit or protect against loss. There is no guarantee that a strategy will achieve its goal.

First Citizens Wealth Management is a registered trademark of First Citizens BancShares, Inc. First Citizens Wealth Management products and services are offered by First-Citizens Bank & Trust Company, Member FDIC, Equal Housing Lender; First Citizens Investor Services, Inc., Member FINRA and SIPC, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.

Brokerage and investment advisory services are offered through First Citizens Investor Services, Inc., Member FINRA and SIPC. First Citizens Asset Management, Inc. provides investment advisory services.

Bank deposit products are offered by First Citizens Bank, Member FDIC.

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.