When a liquidity need arises

using a securities-based line of credit may be a smart alternative

A large tax bill is due. An ideal real estate property hits the market.

A unique business opportunity emerges.

You have three options to consider in order to source the funds you need:

Using available cash

is always an option, but regularly holding cash balances can have high opportunity costs

Selling assets

can trigger unfavorable tax consequences or disruptions to your investment portfolio

Having a line of credit

that uses the securities in your portfolio as collateral may be a smarter short- and long-term solution

Our short video explains the key advantages of a
securities-based line of credit.

Valuable benefits
can make a line of credit a smart alternative.

Financial
flexibility

Quickly access liquidity for a range of uses—whether you’re meeting a large financial obligation or seizing an opportunity

Option to
remain invested

Allows you to keep your investment plan and
asset allocation intact
without disrupting your
long-term strategy

Potentially
tax-efficient

It can potentially be structured in a tax-efficient way, which may allow you to more effectively grow and preserve wealth

Cost-effective

There are no setup fees, and only the funds you use incur interest charges, which are often lower than other financing options

Talk with your J.P. Morgan advisor
to understand your options.

Particularly as tax seasons approaches, using a line of credit can give you greater financial flexibility.

As with all investment decisions, it’s important to understand the risks of borrowing before moving forward. Events
beyond your control, like market fluctuations that may reduce the value of your pledged securities, could lead to the
possibility of a margin call. We’re here to help you get a clear picture of all the risks and benefits before you decide.

Why not set up time to talk with your J.P. Morgan team? We’ll discuss your individual situation and help you make
the best decisions for your needs today and in the future.

IMPORTANT INFORMATION

This material is intended to help you understand the financial consequences of the concepts and strategies discussed here in very general terms. The strategies discussed often involve complex tax and legal issues. Your own attorney and other tax advisors can help you consider whether the ideas illustrated here are appropriate for your individual circumstances. JPMorgan Chase & Co. does not practice law, and does not give tax advice, accounting or legal advice. We are available to consult with you and your legal and tax advisors as you move forward with your planning.The discussion of loans or other extensions of credit in this material is for illustrative purposes only. No commitment to lend by J.P. Morgan should be construed or implied. Lines of credit are extended at the discretion of J.P. Morgan, and J.P. Morgan has no commitment to extend a line of credit or make loans available under the line of credit. Any extension of credit is subject to credit approval by the lender in accordance with the terms contained in definitive loan documents. Loans collateralized by securities involve certain risks and may not be suitable for all investors. Assets used as collateral for a securities based line of credit are subject to liquidation to meet collateral/maintenance calls. 

Collateral/maintenance calls may include the sale of the asset serving as collateral if the collateral value declines below the amount required to secure the line of credit. In exercising its remedies, J.P. Morgan will not be required to marshal assets or act in accordance with any fiduciary duty it otherwise might have. JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (JPMS), a member of FINRA and SIPC. JPMCB and JPMS are affiliated companies under the common control of JPMorgan Chase & Co. We believe the information contained in this material to be reliable, but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgement based on current market conditions and are subject to change without notice. This material should not be regarded as research or a J.P. Morgan research report. Opinions expressed herein may differ from the opinions expressed by other areas of J.P. Morgan, including research. The investment strategies and views stated here may differ from those expressed for other purposes or in other contexts by other J.P. Morgan market strategists. This material is distributed with the understanding that is note rendering accounting, legal or tax advice. Consult your legal or tax advisor concerning such matters. For a complete discussion of the risks associated with any investment, please review offering memorandum and speak with your J.P. Morgan Advisor. JPMorgan Chase & Co. and its subsidiaries do not render accounting, legal or tax advice.

Additional information is available upon request.


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