Securities-backed lending (SBL) is a strategic wealth management tool that offers benefits for investors, firms and financial professionals. But with the rise in SBL popularity, several myths may be keeping professionals from considering SBL for their clients. Nationwide makes SBL faster and simpler. Let’s take a look at the facts and numbers.


It takes too long to access cash.


Hours or days – not weeks

That’s how quickly clients can gain access to cash with Nationwide Smart CreditSM.


SBL requires too much paperwork.


Easy, online process

No hard-copy mailing is required by clients to tap into the power of their portfolio through Nationwide Smart Credit.


SBL can help only my wealthiest clients.


$25,000 minimum

That low required minimum line of credit means Nationwide Smart Credit can offer investors of even modest means the opportunity to meet their liquidity needs.


SBL is only useful when interest rates are low.


SBL is a better alternative than liquidating

Regardless of interest rates, SBL helps avoid capital gains taxes, plus allows assets to continue to grow. Even when rates are high, SBL can be a lower-cost alternative to other lending options.


Clients must have a need before they’ll try SBL.


$0 fees

No fees are required to open a line of credit through Nationwide Smart Credit. You can help your client open a line proactively, so funds are available when they need them.


Clients are looking to me for lending needs.


Opportunity to serve an unmet client need
of investors expect loan and credit management solutions from their financial professionals, such as SBL.

4% of these individuals actually have access to them.1


All debt is bad debt.


Not all debt is created equal

Leveraging investments to access cash can bring holistic net value to a portfolio. SBL offers easy access to cash with flexible repayment, unlike high-interest consumer debt like credit cards and personal loans.

As with most financial products, SBL involves risks

If the value of an SBL client’s portfolio falls below a certain level, they 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.

Specifically, the risks include the fact that the lender may:

  • Suspend and/or terminate the client’s line of credit
  • Declare all indebtedness immediately due and payable
  • Sell any collateral in order to maintain the line-to-value requirement
  • Require additional collateral from the client in order to meet the line-to-value requirement
  • Require the client to pay down the principal in order to meet the line-to-value requirement

SBL can help clients meet a range of needs

When strategically used, debt can be leveraged as an asset, helping clients take advantage of opportunities, even supplement retirement income and address estate-planning needs. And Nationwide’s fully digital, cloud-based technology makes SBL simpler. 

To learn more about how Nationwide Smart Credit makes accessing cash simpler for you and your clients, visit

[1] “Defining Wealth Management,” Spectrem Group (January 2023).

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 12/31/2024. Maryland: License Number 1804109. Missouri: Consumer Credit Loan Company registered by the Missouri Division of Finance, license number 367-23-8932. 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, Montana, Nevada, and Vermont.

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: