BANKING SOLUTIONS TO BROADEN BUSINESS PERSPECTIVES
WE TRANSFORM BUSINESS NEEDS INTO SOLUTIONS THAT GROW WITH YOUR BUSINESS.
The Bancorp has decades of multi-industry banking experience and a technological focus to help our clients achieve sustainable business growth.
AGILE, SECURE & SCALABLE FINTECH SOLUTIONS
Our partners benefit from our financial strength and industry expertise.
The Bancorp deploys custom payments services merging cutting-edge technology with superior regulatory and compliance infrastructure.
Accessing new avenues to leverage existing wealth
Through strategic alliances with nonbank wealth management platforms, we enable independent and registered financial professionals to expand their service offering to better compete with larger and more fully-resourced institutions.
A one-of-a-kind offering to serve you better
The Bancorp Commercial Lending business offers a distinctive set of services which reflect our commitment to meeting your evolving business needs.
Whether you need a small business loan or leasing services for a fleet of vehicles, we can provide you the expertise and financial traction to keep you on the road to success.
COMPETITIVE BRIDGE FINANCING SOLUTIONS
THE BANCORP PROVIDES BORROWERS WITH CERTAINTY OF EXECUTION FOR NON-RECOURSE COMMERCIAL REAL ESTATE BRIDGE LOANS NATIONWIDE.
As a direct lender, we provide a streamlined, single source of origination, funding, and asset management for loan brokers and their clients seeking to purchase and reposition multifamily and other commercial real estate properties.
WE TAILOR BANKING SOLUTIONS TO YOUR BUSINESS NEEDS.
Across our Fintech Solutions, Institutional Banking and Commercial Lending business lines, The Bancorp offers a wide range of products and services that can transform your business needs into long-term, technology-enabled solutions.
GAIN INSIGHT FROM INDUSTRY EXPERTS
OUR FINETICS® BLOG OFFERS TIMELY COMMENTARY ON THE LATEST BANKING TRENDS.
Tap into the mindset of The Bancorp solution leaders as they discuss what’s new in the banking industry and how The Bancorp can help you stay ahead of the curve.
EXPERT COMMENTARY AT YOUR FINGERTIPS
THE BANCORP OFFERS A VISIONARY APPROACH TO BANKING BACKED BY DECADES OF INDUSTRY EXPERTISE.
The Bancorp solution leaders are financial industry experts conversant with the latest banking trends and the next generation of business banking solutions.
THE BANCORP DESIGNS THE FUTURE OF BANKING ONE CLIENT AT A TIME.
We’re not a startup, but we think that way. The Bancorp approaches each client’s needs as an opportunity to develop the next generation of banking products and services.
STRENGTHENING OUR VISIONARY FOUNDATION
THE BANCORP LEADERSHIP FOSTERS AN INVENTIVE APPROACH TOWARD BANKING.
The Bancorp Leadership Team sets the compass for exploring new perspectives that drive continuous organizational growth.
NAVIGATE A REWARDING CAREER AT THE BANCORP
WE’RE INVESTED IN YOUR DEVELOPMENT AND GROWTH.
The Bancorp offers a dynamic work environment and ongoing opportunities to broaden your knowledge and enrich your skill sets.
COMMITTED TO DIVERSITY & INCLUSION
THE BANCORP VALUES THE DIFFERENCES THAT MAKE US UNIQUE.
We cultivate an environment where all cultures, ideas and perspectives are equally acknowledged and respected.
Values-Based Business Practices
ESG principles are integral to The Bancorp’s business strategy.
Our Environmental, Social, and Governance (“ESG”) initiatives guide our business practices to create positive change for our local communities, the environment, our clients and customers, and the banking industry as a whole.
When clients are ready to write a new beginning through homebuying, financial professionals can help them achieve their fairytale ending by equipping them with necessary liquidity options.
For clients considering the purchase of a new or second home, several options are available to utilize their existing assets to help with costs. Our team previously shared how clients can use a Securities-Backed Line of Credit to help fund the purchase of a home, but there is also an alternative option available from The Bancorp Institutional Banking: an Insurance-Backed Line of Credit (IBLOC).
Switch the Setting of Your Story
It’s no secret that navigating the current real estate market is a struggle, with cash purchases taking priority. In an aggressive landscape, potential homebuyers should put their best foot forward by understanding what assets they have available to make their offer more attractive. Clients who have invested in a whole life insurance policy have the option to use the cash value of their policy to take out a loan that can be used toward purchasing a new home, including down payments, closing costs, and other related fees. This option allows quick access to capital without tying the loan to investment portfolios or property through a Home Equity Line of Credit (HELOC).
Though each option has its benefits and setbacks, the IBLOC enables clients to use a line of credit from a permanent or whole life insurance policy to open a new chapter in their lives. Offering an interest-only line of credit, new homebuyers can access up to 95% of the cash value of an eligible life insurance policy and increase their line of credit anytime without taking out a separate loan.1-4 Homebuyers who choose to take out a mortgage can also utilize an IBLOC to make a larger down payment on property resulting in lower monthly mortgage payments. Whichever way the buyer chooses to buy a property, the remaining funds available through an IBLOC can be used for other related expenses including closing costs, hiring movers, and furniture and décor purchases.
When time is of the essence to make an offer, an IBLOC can be an advantage. Through a streamlined underwriting and simplified documentation process, Institutional Banking can provide an efficient and effective option that gives clients an edge over other offers.
When working with financial professionals and their clients, The Bancorp Institutional Banking offers unique solutions that set the stage to maintain wealth while continuing the narrative of clients’ life stories. In one instance, a financial professional contacted Institutional Banking on behalf of their client, who was looking to purchase a multifamily home but did not have the cash on hand for its down payment.
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The IBLOC: A Homebuying Hero
Costing approximately $700K, this particular property was in demand, and there were already multiple offers on the house. The payment was needed quickly, or the client would lose the opportunity to purchase the home. Initially considering a HELOC, it was decided that tapping into the cash value of the client’s whole life insurance policy would provide more attractive rates and terms and the client decided to purchase the property by using an IBLOC.
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The IBLOC: A Homebuying Hero
This option kept the line of credit from being tied to the client’s existing property or other assets. Working with Institutional Banking to secure an IBLOC, the client was able to have the funds wired to their account on the same day to help put the winning offer in on the property.5
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Sidekick in Wealth Management Strategies
Home purchasing can be complicated, but if Institutional Banking plays a part in the story, it can be made simpler. Beyond offering access to an IBLOC, the team provides its partners with one-of-a-kind banking products and dedicated support. Focused on fostering long-term relationships with financial professionals, the team prides itself on providing solutions, not competition.
To play a solid supporting role, The Bancorp delivers banking options that enable financial professionals to offer clients holistic advice to preserve and grow their wealth. With a technological focus, Institutional Banking can integrate seamlessly into wealth management strategies and provide proprietary platforms like TALEA® to help simplify loan originations. Whenever a client is ready to write the next page of their life, Institutional Banking can help fund the rest of their story.
Opinions, findings, or perspectives contained in this blog are those of the authors. All references to The Bancorp refer to The Bancorp Bank, N.A., the wholly-owned subsidiary of The Bancorp, Inc.
1. Policy must be in effect for at least 12 months at the time of credit application. Line of credit is contingent on life insurance policy remaining in good standing. The insurance policy owner must be the borrower. Insurance policy must be issued by one of the following approved insurance providers to be eligible as IBLOC collateral: Guardian, MassMutual, Northwestern Mutual, NY Life, John Hancock, Penn Mutual, Ameritas Life Insurance Corp, Security Mutual Life. Approved insurance providers are subject to change. There may be an adverse tax consequence to clients pledging the policy and as such, we strongly advise consulting with a tax advisor before pledging the policy as collateral for a loan.
2. Subject to credit approval and underwriting.
3. Collateral Lending Value is an amount equal to the sum of the then cash surrender value of the policy to which the pledgor is entitled, multiplied by such percentage as The Bancorp Bank, N.A. (“Bank”) may determine in its discretion, not to exceed ninety-five percent (95%).
4. No credit limit increase is permitted within one-hundred-eighty (180) calendar days of the loan origination date. Maximum number of credit limit increases per calendar year is two (2). Other terms apply.
5. Each client’s case is unique and individual outcomes may vary.
Collateral-based borrowing may not be suitable for everyone. Consult a financial advisor about any associated risks. Consult a tax advisor for tax-related matters and an attorney for legal matters. The Bancorp Bank, N.A. does not provide financial, tax, or legal advice. Rates, terms, and conditions of loan products are subject to change without notice.
IBLOC
Insurance-Backed Line of Credit
Homebuying
Institutional Banking
Lending
Wealth Management
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