Custom Lending

Loans and terms tailored to your liquidity needs and financial situation with a wide range of collateral options and terms, including financing for commercial real estate, hedge funds, yachts and art collections.

A true picture of your wealth goes far beyond just the investments you own. It includes the borrowing power that your assets convey as well as a customized approach to your complex financial needs.

Custom Lending offers flexible financing options designed for clients with complex wealth using specialized assets as collateral to obtain liquidity to meet unique goals.

A customized approach to your complex financial needs

Because your wealth may come in many different forms, we offer custom lending solutions from Bank of America that empower you to think beyond your investments when managing your finances. You can use a wide range of collateral options to access liquidity, including:

  • Marketable securities
  • Investor commercial real estate
  • Recreational real estate, including ranches and vineyards
  • Hedge fund positions
  • Yachts
  • Art

In some instances, unsecured lending may also be available.

A hands-on approach

Bank of America credit specialists will work with you and your private wealth advisor from start to finish, helping you explore the full range of custom lending solutions available. This collaborative process allows you to discuss areas that could be strengthened with additional liquidity, uncover opportunities to finance new ventures or purchases without disrupting your investment portfolio, and identify hedging strategies to help protect your assets against rising interest rates or market swings. The ultimate goal is to design a customized credit strategy to meet your needs.

Risks of Borrowing

Borrowing does have inherent costs and certain risks as well as benefits. It is important to factor in borrowing costs as well as potential market volatility, the possibility of collateral calls and other covenants and restrictions on collateral in making a decision to use leverage. If lending funds to other family members, it is important to seek independent advice on tax and other issues, as well as establish clear protocols on interest and repayment. Also, you should consider your risk tolerance, time horizon, portfolio composition and any capital gain impact when considering a loan.

Connect with a Merrill Private Wealth Advisor.

Custom lending may involve special risks and may not be appropriate for all clients. In particular, custom lending may be subject to additional credit and legal approval because of special risks and restrictions that need to be carefully considered. Real estate financing and specific program options and property types may not be available in all states and may be subject to change from time to time. As a general rule with respect to each client, consideration must be given to capital gains tax implications, portfolio makeup and risk tolerance, portfolio performance expectations, and investment time horizon.

Securities-based financing involves certain risks. We can help you take into account your individual requirements, portfolio composition and risk tolerance, as well as capital gains taxes, portfolio performance expectations and investment time horizon. Securities-based financing may not be suitable for all clients. The loan is secured by assets in your Merrill Lynch account(s). Market fluctuations may result in a collateral call, and you may need to deposit additional cash and/or securities to meet the call or risk liquidation of your securities at an unfavorable price. In some cases, the securities pledged as collateral may be liquidated. Among other things, this may have negative tax implications for you, especially if the liquidation price of the securities liquidated exceeds your basis. The firm can sell your assets to meet a collateral call without notifying you, and you are not entitled to choose which securities in the account will be sold. You are not entitled to an extension of time to meet a collateral call.

Nonfinancial assets, such as real estate, fine art, farm and ranch land, are complex in nature and involve risks including total loss of value. Special risk considerations include natural events (for example, earthquakes or fires), complex tax considerations, and lack of liquidity. Nonfinancial assets are not in the best interest of all investors.

Hedging and monetization strategies can result in higher return potential but also higher loss potential. Prospective investors are required to meet certain qualifications and acknowledge they understand the risks associated with certain hedging and monetization strategies that may not be suitable for all investors.

Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based financing involves special risks and is not for everyone. When considering an asset-based loan, consideration should be given to individual requirements, asset portfolio composition and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation (“BofA Corp.”). Home Icon for Equal Housing Lender Equal Housing Lender. 

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