Managing Both Sides of the Balance Sheet
Debt. It doesn’t have to be a four-letter word.
It’s human nature—we tend to focus more on growing assets and less on liabilities. Securing credit can be a pain and taking on “debt” can sound scary, especially when clients must go outside their financial advisor relationship to get it.
Whit Magruder, Head of GS Select, has years of experience in private lending and understands the difficulties often associated with borrowing. “Though credit is ubiquitous, professional guidance on managing it is somewhat scarce,” he says.
Securities-based lines of credit help address that dilemma. They allow clients to secure credit by working with their advisor, who is familiar with the client’s personal objectives and broader financial picture. Securities-based lines of credit can be helpful in meeting short- and long-term financial goals, while preserving existing investment plans—since a client borrows against assets without having to cash out.
Life moves fast and liquidity needs can arise quickly—a capital call, highly-sought real estate opportunity or an exciting new business venture, for example. Securities-based lines of credit can be established both in advance of these needs and in response to a more immediate need.
GS Select aims to ensure a more comfortable experience in managing liabilities by allowing advisors and their clients to maintain a full picture of the credit activity, outstanding balances and payment schedules in every case.