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Your portfolio has more power than you may think

Why securities-based lending might be a better way to access funds

If you find yourself in need of funds, whether for a home renovation, business opportunity, or unexpected expense, you may already have the solution — in your investment portfolio. Borrowing against the securities in your eligible Wells Fargo Advisors portfolio with a Priority Credit Line (PCL) may provide an easier path to the money you need than other types of financing. Plus, you can keep your long-term strategy on track because you won’t have to sell or liquidate investments.

Borrowing flexibility at a competitive interest rate

Priority Credit Line Interest Rate
(based on Wall Street Journal Prime Rate of 3.25% as of June 22, 2021)
Investment balances at Wells Fargo Advisors*Variable Interest Rate
Less than $5 million3.25% (WSJ Prime Rate)
$5 million or more2.75% (WSJ Prime Rate less 0.50%)
Custom pricing may be available.
Contact your financial advisor.

How it works

A PCL is a smart, strategic way to access funds compared to other borrowing solutions:

  • You can use the funds for almost any personal or business need except to purchase, carry, or trade securities or to pay down or pay off a margin account.
  • No monthly payment is required. You may repay interest at your convenience or add the interest to your outstanding balance.
  • The interest rate on your PCL account is based on your total WFA household brokerage assets.*

Why it might be right for you

  • It’s flexible – funds can be used for planned, unplanned and opportunistic purchases, and the repayment terms are flexible too.
  • It’s cost-effective – get a competitive 3.25% or less variable interest rate.
  • It’s easy to get started – there’s no lengthy application process or waiting on credit or underwriting approvals. There’s also no application fee, closing costs, or prepayment penalties.
  • It’s convenient – get access to cash via online, the mobile app or your advisor.
  • It keeps you on track – stay invested in the market while leveraging your securities for liquidity.

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Call your financial advisor who understands your goals and full financial picture to determine if securities-based borrowing with a Priority Credit Line is appropriate for your situation.

Carefully consider whether securities-based borrowing is right for you.
Securities-based borrowing has special risks and is not appropriate for all investors. If the market value of pledged securities declines below required levels, you may be required to pay down your line of credit or pledge additional eligible securities in order to maintain it; otherwise the firm will require the prompt sale of some or all of your securities.

To learn more, read our Guide to Priority Credit Line (PDF).


*Household investment balances include all of your personal accounts as well as accounts of your spouse or domestic partner, dependents, and wholly-owned businesses.

Securities-based lending has special risks and is not appropriate for everyone. If the market value of a client’s pledged securities declines below required levels, the client may be required to pay down his or her line of credit or pledge additional eligible securities in order to maintain it, or the lender will require the sale of some or all of the client’s securities. Wells Fargo Advisors will attempt to notify clients of maintenance calls but is not required to do so. Clients are not entitled to choose which securities in their accounts are sold. The sale of their securities may cause clients to suffer adverse tax consequences. Clients should discuss the tax implications of pledging securities as collateral with their tax advisors. Wells Fargo Advisors and its affiliates are not tax or legal advisors. An increase in interest rates will affect the overall cost of borrowing. All securities and accounts are subject to eligibility requirements. Clients should read all lines of credit documents carefully. The proceeds from securities-based lines of credit may not be used to purchase additional securities, pay down margin, or for insurance products offered by Wells Fargo affiliates. Securities held in a retirement account cannot be used as collateral to obtain a loan. Securities purchased in the pledge account must meet collateral eligibility requirements. Financing real estate with a securities-based line of credit carries risk and may not be appropriate for your needs. A complete assessment of your circumstances is needed to help you determine which type of loan provides the best fit.

Wells Fargo Advisors (“WFA”) and its financial advisors have a financial incentive to recommend the use of securities-based lending products (“SBLs”) rather than the sale of securities to meet client liquidity needs. Financial advisors will receive compensation on Priority Credit Line (“PCL”) and other non-purpose SBL from Wells Fargo Bank. Your financial advisor’s compensation is based on the outstanding debit balance in your account. In addition, your financial advisor’s compensation will be reduced if your interest rate is discounted below a certain level. This creates an incentive for financial advisors to recommend PCL and other SBL products, as well as an incentive to encourage you to maintain a larger debit balance and to discourage interest rate discounts below a certain level. The interest you pay for the loan is separate from and in addition to other fees you may pay related to the investments used to secure the loan, such as ongoing investment advisory fees (wrap fees) and fees for investments such as mutual funds and ETFs, for which WFA and/or our affiliates receive administrative or management fees or other compensation. Specifically, WFA benefits if you draw down on your loan to meet liquidity needs rather than sell securities or other investments, which would reduce our compensation. When assets are liquidated pursuant to a house call or demands for repayment, WFA and your financial advisor also will benefit if assets that do not have ongoing fees (such as securities in brokerage accounts) are liquidated prior to or instead of assets that provide additional fees or revenues to us (such as assets in an investment advisory account). Further different types of securities have higher release rates than others, which can create a financial incentive for your financial advisor to recommend products or manage the account in order to maximize the amount of the loan.

Priority Credit Line is offered by Wells Fargo Advisors and lending and margin accounts are carried by Wells Fargo Clearing Services, LLC (WFCS). Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.

Equal Opportunity Lender