Liquid Asset Lending: When it Makes Sense and How You Can Benefit

Jayne Carter and her spouse, Greg, were vacationing in Florida when they encountered the perfect vacation home for their family. The couple, a physician and accountant, had long-term plans for a second home, but didn’t expect to locate a property that met all their needs so quickly. Not wanting to risk losing their opportunity to own the home, they realized they had to extend a cash offer. They’d been saving for this significant purchase and investing the bulk of their assets in securities. Jayne and Greg didn’t want to sell those assets and lose possible long-term benefits just to secure the cash they needed to purchase their dream home.

Newly-minted empty nesters Donald and Gayle Washington have been patiently waiting for the perfect time to transform their backyard into an outdoor oasis – complete with a pool, patio fireplace, seating area, gourmet grilling/smoking station and bar. Once the plans were drawn and contractors were selected, they were eager to get the project started. The couple had the necessary assets to cover the associated costs since they sold their family business the previous year. But the bulk of the proceeds were invested in their portfolio, as well as CDs that could not be accessed for several years without incurring early withdrawal penalties.

In cases like these, one solution for quick access to cash could be Liquid Asset Lending. A Liquid Asset Line of Credit or Loan is a great way to leverage money already saved in non-retirement investments to gain access to money for an unexpected opportunity – such as a real estate purchase. However, an asset-based line or loan can be used to access cash for a wide range of financial needs – to pay taxes, consolidate debt, manage short-term cash flow needs, etc.

A Liquid Asset Line of Credit or Loan works much like a Home Equity Line of Credit Loan, but instead of using a house as collateral, investments are used. Those investments must either be transferred or invested with Yellow Cardinal to gain access to the cash.

And the advantages of Liquid Asset Lending are numerous:

• No credit score is required
• Low variable rates
• Flexible loan repayment:
  • Option to pay interest only, over 24 months
  • Installment (fixed principle and interest monthly payments) over 60 months
• Fast approval process
• Easy access to available funds

Before taking out a loan or line of credit, we highly recommend you consult with your tax advisor or attorney about the options you’re considering. Your First Financial banker can help you have that conversation.

Interested in learning more about Liquid Asset Lending? Contact your First Financial banker.

The information on this page is accurate as of April 2023 and is subject to change. First Financial Bank and Yellow Cardinal Advisory Group are not affiliated with any third-parties or third-party websites mentioned above. Any reference to any person, organization, activity, product, and/or service does not constitute or imply an endorsement. By clicking on a third-party link, you acknowledge you are leaving bankatfirst.com. First Financial Bank and Yellow Cardinal Advisory Group are not responsible for the content or security of any linked web page.

The information provided herein is for illustrative purposes and should not be considered investment advice and is not designed to address your investment objectives, financial situation or particular needs. The information is as of the date referenced herein and is subject to change at any time based on market, economic or other conditions. The data represented has been obtained from sources deemed reliable, but we do not guarantee its accuracy or completeness.

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