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.
Tackle Tax Payments with Insurance or Securities-Backed Line of Credit
Gregory Fat, Director Regional Business Development Officer, Institutional Banking
A large tax bill can catch anyone off guard, and the best way to handle this unpredictable situation is to start conversations early on. As financial professionals meet with clients to proactively plan for the 2024 tax season, one of the first items to cover should be how to strategically pay their 2023 tax bill by utilizing assets, preserving wealth, and keeping portfolio investments in place.
One tactic that can help achieve these goals is accessing liquidity through the cash value of an eligible whole life insurance policy with an Insurance-Backed Line of Credit (IBLOC)1,2 or from non-retirement investments through a Securities-Backed Line of Credit (SBLOC).3 Both options can provide financial professionals and their clients the flexibility to pay taxes and meet other cash needs throughout the year without disrupting long-term financial goals.4
For the 2023 tax year, here are federal income brackets and rates to be mindful of:5
Tax Rate
Single Individual
Married Joint Return
Head of Household
10%
$11,000 or less
$22,000 or less
$15,700 or less
12%
$11,000 - $44,725
$22,000 - $89,450
$15,700 - $59,850
22%
$44,725 - $95,375
$89,450 - $190,750
$59,850 - $95,350
24%
$95,375 - $182,100
$190,750 - $364,200
$95,350 - $182,100
32%
$182,100 - $231,250
$364,200 - $462,500
$182,100 - $231,250
35%
$231,250 - $578,125
$462,500 - $693,750
$231,250 - $578,100
37%
$578,125 or more
$693,750 or more
$578,100 or more
Capital Gains Tax Rates⁶
Tax Rate
Single Individual, Taxable Income Over
Married Joint Return, Taxable Income Over
Head of Household, Taxable Income Over
0%
$0
$0
$0
15%
$44,625
$89,250
$59,750
20%
$492,300
$553,850
$523,050
Why pay taxes with a line of credit?
Other financial goals and obligations can take priority throughout the rest of the year, and a large tax payment can easily be overlooked. To maintain progress toward financial goals, it’s beneficial to have a plan in place to pay unavoidable tax bills.
Through the use of a line of credit, clients can access the money necessary to get this expense paid on time and avoid unnecessary penalties. By accessing credit through an IBLOC or SBLOC, clients can access liquidity from assets already available and avoid high-interest payments from other lines of credit. The Bancorp’s Institutional Banking team offers flexible payment terms with 36-month fixed rates for both an IBLOC and SBLOC. With this option, clients can choose to use funds to pay the entirety of their tax bill and use the extra cash to continue to fulfill other financial goals.
The IBLOC and SBLOC can offer competitive interest rates and cost-efficiencies compared to other conventional loans, including no application fees, underwriting fees, appraisal fees, or penalty fees for early payoff.⁷ When determining if an IBLOC or SBLOC is right for you, there are a few differentiators to keep in mind:
IBLOC
SBLOC
Interest-only credit line allows you to tap up to 95% of the cash value of whole life, universal life, or indexed universal life insurance policies1
Interest-only revolving line of credit backed by nonqualified securities held in an investment account
Minimum Credit Line: $75,0008 for Individuals and trusts; $200,000 for business entities and organizations
Minimum Credit Line: $75,0008
Available to individuals, trusts, business entities, and organizations
Available to individuals, trusts, and entities
No closing costs
No application fee, no annual or monthly fees 7
No charge for the portion of line in use
How to get started?
Our Institutional Banking team is backed by more than 20 years of experience providing banking solutions for financial professionals and non-bank institutions. Our team partners directly with financial professionals to understand the wealth management strategy of their clients and provide a high level of support without fear of competition that can often come from other banks. Whether an IBLOC or SBLOC is the right fit for your client, the process is simplified with the help of TALEA®, our proprietary loan origination platform that enables speed and simplicity.9
When developing a strategy to pay 2023 taxes, an IBLOC or SBLOC could provide financial professionals and their clients with a strategic method to pay their tax bill and other living expenses without disrupting portfolio assets or assets under management.
Learn more about what we can offer by visiting The Bancorp Institutional Banking at the SBLOC FAQ.
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. The Bancorp Bank, N.A.'s list of approved insurance carriers may be updated periodically and is subject to change.
2. Subject to credit approval and underwriting.
3. Securities-based lending has special risks and may not be suitable for everyone. If the market value of the pledged collateral declines below required level, the client may be required to pay down the loan or line of credit or pledge additional eligible collateral in order to maintain it, or the Bank may require the sale of some or all of the client's pledged collateral. The sale of the client's pledged collateral may cause adverse tax consequences.
4. An IBLOC or SBLOC offered through The Bancorp Bank, N.A. (“Bank”) cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.
7. The Bancorp Bank, N.A. does not charge application fees. State, local, and/or third-party fees may apply in some states.
8. Minimum requested amount must be $75,000.00 or such greater amount as may be proscribed from time to time pursuant to 12 C.F.R. Section 1026.3(b) of Regulation Z issued by the Consumer Financial Protection Bureau as the minimum threshold necessary to qualify the Line of Credit as an exempt consumer credit transaction thereunder.
9. The Bank does not offer tax, legal, or investment advice. Clients should consult a tax advisor, lawyer, or financial professional, as necessary.
Opinions, findings, or perspectives contained in this blog are those of the authors.
IBLOC
Insurance-Based Loans
Insurance-Backed Line of Credit
SBLOC
Securities-Based Loans
Securities-Backed Line of Credit
Capital Gains
Taxes
Tax Payments
Liquidity
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