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  • Smart Credit

    • SECURITIES-BACKED LENDING

    Faster access to cash and an easier online process

    with the Nationwide Smart CreditSM securities-backed line of credit

    Download print version (PDF)

    What is Nationwide Smart CreditSM?

    For clients with a need for liquidity, Nationwide Smart CreditSM provides a simpler way to access cash — without liquidating assets. It leverages non-qualified, non-retirement assets as collateral for access to capital. Open a line anytime with no fees, so it’s ready to go when your clients need cash. They'll enjoy flexible, interest-only repayment options with no rigid payment schedule. 

    You'll enjoy the easy-to-use online portal that adds transparency from the application to servicing and everything in between.

    Your opportunity to fill a gap

    84%
    of investors expect loan and credit management from their financial professional.1

    4%
    of these individuals say they receive it.1

    The Nationwide® difference

    With a Nationwide Smart Credit securities-backed line of credit (SBLOC), your clients can access cash within hours or days, not weeks. Nationwide Smart Credit is a wealth management lending option that offers you and your clients:

    Nationwide Smart Credit offers benefits to both you and your clients

    For you

    • Nationwide Smart Credit keeps assets under your management
    • You’re able to offer a sought-after wealth management solution
    • You’ll deepen client relationships by solving more of their needs

    For your clients

    • It keeps their portfolio intact and working for them — no sacrificing growth for liquidity
    • It’s a cost-effective solution with rates that are typically lower than other lending options
    • It offers flexibility with a variety of monthly payment options

    The benefits of being a non-bank lender

    • Flexible, non-purpose loans: Other than purchasing additional securities, Nationwide Smart Credit lines of credit can be used for whatever the borrower wishes
    • A streamlined, completely online process: No lengthy underwriting processes or paperwork; Nationwide Smart Credit enables access to cash in hours or days — not weeks, like other lending options2
    • Competitive rates: Because we leverage the Secured Overnight Financing Rate (SOFR)3 and the portfolio is used as collateral, our rates tend to be lower than with other lending options
    • Flexible criteria: Because the portfolio is used as collateral, our requirements for credit score and income verification are more generous than other lending options
    • A tailored approach: Each line of credit is unique and handled with custom care by our experts; with line sizes available from $26,000 to $60 million, we can meet the needs of a vast array of clients

    Product highlights

    • The line amount is a percentage of the value of the eligible securities in the investment account; however, 100% of the account must be pledged
    • The minimum line of credit is $26,000 and the maximum is $60 million
    • There’s no minimum initial draw, and subsequent draws have a low minimum of $1,000
    • Funds are accessed via automated clearinghouse (ACH) to the linked bank account set up during application; clients are able to access the line by ACH or wire; wire transactions have a $10,000 minimum; there is no exception requirement
    • There’s no repayment period
    • Choose between fixed or variable rate interest options
    • Fixed rate: minimum draw $25,000 and interest is fixed over the term
    • Variable rate: minimum draw is $1,000 and interest payments are due monthly based on the 1-month Secured Overnight Finance Rate (SOFR)3 plus a margin
    • No application fees
    • No maintenance fees
    • No prepayment fees
    • No wire fees
    • Common stocks/American depositary receipts (ADRs) traded on the Nasdaq or NYSE
    • Government/municipal securities
    • Corporate bonds
    • Mutual funds
    • Cash/certificates of deposit (must be FDIC insured)
    • Unit-traded funds
    • Exchange-traded funds
    • Non-traditional mutual funds

    Things to consider

    The Nationwide Smart Credit line carries risks. If the value of your portfolio falls below a certain level, you may be required to provide additional securities as collateral or cash to immediately pay down part of the line. If that’s not possible, some investments may be liquidated, resulting in potential tax consequences.1

    The risks include, but are not limited to, the fact that the lender may:

    • Suspend and/or terminate your line of credit
    • Declare all indebtedness immediately due and payable
    • Sell any collateral in order to maintain the line-to-value requirement4
    • Require additional collateral from you in order to meet the line-to-value requirement
    • Require you to pay down the principal in order to meet the line-to-value requirement
    Nationwide® is here to help.
    To learn more about securities-backed lending, visit nationwide.com/sbl

    Download print version (PDF)


    [1] "Defining Wealth Management," Spectrem Group (January 2023).
    [2] Speed of accessing the line of credit refers to the start of the application process to the time of the first draw. This assumes the custodian allows for e-processing of documents and prompt response from all parties. The time may vary by client.
    [3] The Secured Overnight Financing Rate (SOFR) is an interest rate benchmark that’s a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities. The SOFR is the recommended alternative to the LIBOR (London Interbank Offered Rate) in the United States. It is based on observable transactions, whereas the LIBOR is based largely on estimated borrowing rates. The 1-Month Term SOFR rates can be found at bit.ly/SOFR-CME.
    [4] Please consult your tax advisor for any tax implications.lsconsumeraccess.org/

    Representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.

    The purpose of a Nationwide Smart Credit line of credit must be for personal, family or household purposes and not for securities investments or to purchase or carry margin securities, which include: (1) stocks that are registered on a national securities exchange, or any over-the-counter security designated for trading in the national market system; (2) debt securities (bonds) that are convertible into margin stock; and (3) shares of most mutual funds.

    California: Loans made or arranged pursuant to a California Lenders Law License. Delaware: Nationwide SBL is licensed by the Delaware State Bank CCL commissioner to engage in business in this State under license number 035414, expires 12/31/2026. Maryland: License Number 1804109. Missouri: Consumer Credit Loan Company registered by the Missouri Division of Finance, license number 367-27-8932. Montana: Montana residents, please click here for important fee and inability-to-pay disclosure statements. Consumer Loan Company License number 1804109. Oregon: License number 1804109. Rhode Island: Rhode Island Licensed Lender. Washington: License number CL-1804109. Click here for state license information and rate and fee disclosures.

    Not available in Mississippi and Nevada.

    Nationwide, the Nationwide N and Eagle, Nationwide Smart Credit and Nationwide is On Your Side are service marks of Nationwide Mutual Insurance Company.

    Nationwide SBL, LLC dba Nationwide Smart Credit (NMLS): 1804109 NMLS Consumer Access: https://www.nmlsconsumeraccess.org/