Can I use the funds in my reserve account as collateral with a securities-backed line of credit?

Transcript

Dealers often wonder if they can use their reserve accounts to secure a securities-backed line of credit. And the answer is no. Only surplus accounts can be used to secure these types of loans. The reason is your reserve account hasn’t earned out yet, and therefore it’s still subject to underwriter requirements. Because of that, they can’t be pledged as security for these types of loans. Banks just won’t accept them.

View All FAQ Videos

Categories: