Loan Management Account® (LMA® account)

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Get the Borrowing Power You Need

Manage multiple loans efficiently through one account and get the borrowing power needed for personal and business financing. With the Loan Management Account® (LMA® account)*, you can pledge a broad range of eligible assets as collateral, leveraging your combined value while keeping your investment strategy on track. Use an LMA account for business financing needs such as: business start-up/expansion, debt consolidation and business acquisitions. (Note: Borrowing with securities as collateral involves certain risks. Proper Management of your account, and a thorough understanding of the conditions that may affect your investments will assist you in effectively using the Loan Management Account.)

  • Leverage your assets for the funds you need rather than deplete cash reserves or disrupt your investment strategy by selling assets
  • Get access to a customized finance solution that suits your business needs, with competitive interest rates
  • Combine the value of assets from both business and personal investments for loan collateral
  • Minimum facility size or available line of credit of $100,000
  • Access funds easily through checks, Fedwire® transfers 

 

Loan Management Account Features

Rates

Choose from fixed or variable rates based on LIBOR (London Interbank Offered Rate). Note: Interest rates are based on your total available credit, not on your outstanding loan balance.

Loan term/size

Revolving line of credit; term loans 1-5 years; standby letters of credit; flexible repayment options.

Eligible collateral

A wide selection of collateral types is eligible to pledge. Some include: equities/fixed-income securities, U.S. Treasuries, and mutual funds.

Fees

No application, account maintenance and Fedwire fees; in select cases certain fees may apply.

Related Products & Services

For your business financial needs:

For your personal financial needs:

 

For more information call 1.866.4ML-BUSINESS (465-2874) or e-mail us at AskMLBiz@ml.com.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, not a bank, and the WCMA account is not a bank account. Banking services are provided by licensed banks or by third parties through arrangements with licensed banks. Unless otherwise indicated, investment products are not FDIC-insured, not guaranteed by a bank and may lose value.

There are risks associated with securities-based loans. Proper management of your account, and a thorough understanding of the conditions that may affect your investments will assist you in effectively using the Loan Management Account.

Should the value of securities pledged as collateral decrease below a certain level (as specified within the loan document), the deposit of additional assets and/or liquidation of assets may be required. Securities-based loans cannot be used for investment purposes. A complete description of the loan terms can be found in the Loan Agreements. When considering Merrill Lynch financing, take into account your individual requirements, portfolio makeup and risk tolerance, as well as capital gains taxes, portfolio performance expectations and investment time horizon.

The Loan Management Account and LMA are registered service marks of Merrill Lynch & Co., Inc.

The Loan Management Account is offered by Merrill Lynch Bank USA. Member FDIC. Equal Opportunity Lender.

A decrease in the market value of the pledged securities and other investment assets may require the deposit of additional funds or the liquidation of some or all of the pledged securities and assets.  A complete description of the loan terms can be found in your loan agreement.

Please note the following risks with securities-based loans:
Borrowing through a securities-based loan and using stock as collateral involves a high degree of risk.  Investors should read the loan agreement carefully so they understand their obligations.
Market conditions can magnify any potential for loss.  If the market turns against investors, they may be required to deposit additional securities and/or cash in the account.
The securities in the account may be sold to meet the margin/maintenance call, and the firm can sell investors’ securities without contacting them.
Some or all of the securities pledged as collateral may be sold at prices higher than the initial cost to investors when they acquired the securities.
If that happens, investors may suffer adverse tax consequences.  Investors should consult a tax advisor in order to fully understand the tax implications associated with pledging securities as loan collateral.

For fixed-rate loans, principal payments made in advance of their due date will be subject to a breakage fee based on any loss or expense incurred by the lender.