Borrowing funds and how to repay your loans

Your borrowing power grows as you transfer more securities or cash, purchase additional marginable securities, or as the value of your marginable securities increases. Frec's Portfolio Line of Credit (PLOC) typically begins at approximately 50% loan-to-value, and can increase to as much as 70% over time as your portfolio grows. This timeline varies by account and isn't guaranteed.

Interest accrues to your loan balance over time rather than being charged as a separate transaction. If you'd like that interest to be tax-deductible, it generally needs to be paid, not simply accrued, by the end of the tax year. Frec offers an autopay option for this.

Frec has a maximum borrow limit of $8 million.

Borrowing funds

1. From your dashboard, select Get started on your portfolio line of credit.
2. Select the borrow option within your portfolio line of credit.
3. Confirm your loan details and submit your request.

When you borrow funds, they're deposited into your cash account, where you can use them to purchase additional securities, invest in your direct index, or withdraw them from the account.

Repaying your loan

1. Select Portfolio line of credit from your dashboard.
2. If you have an outstanding loan, a Repay option appears near the top of the screen. Select it, then choose your funding source (Frec Cash or an external bank account) and enter the repayment amount.
3. Confirm your loan repayment and submit your request.

Keep in mind

Margin borrowing carries additional risk, including the potential for a margin call if your portfolio's value drops. Review Frec's margin disclosure before borrowing.