SyntheticFi

About SyntheticFi

SyntheticFi provides a securities-backed lending solution that utilizes box spreads to offer interest rates 1% to 3% lower than traditional lenders, with no additional paperwork or credit checks required. This platform enables independent financial advisors to meet their clients' liquidity needs efficiently, allowing for loans starting at $10,000 while maintaining tax-deductible interest expenses.

```xml <problem> Independent financial advisors often struggle to efficiently meet clients' liquidity needs due to the paperwork, delays, and higher interest rates associated with traditional securities-backed lending solutions. Existing options may also lack tax advantages or require clients to move assets between custodians. </problem> <solution> SyntheticFi provides a securities-backed lending platform that enables independent financial advisors to offer clients lower interest rates and tax-deductible loans, starting at $10,000, without additional paperwork or credit checks. The platform leverages box spreads, a strategy using listed S&P 500 Index options, to access institutional borrowing markets and offer interest rates typically 1% to 3% lower than traditional lenders. SyntheticFi integrates with major custodians like Charles Schwab, allowing clients to maintain their existing accounts. The fully digital onboarding process streamlines loan setup, and advisors can offer both floating and fixed-rate loans tailored to client needs. </solution> <features> - Interest rates based on SOFR + a fixed spread, often lower than traditional securities-backed loans - Minimum loan size of $10,000 - No credit checks or wet signatures required - Fully tax-deductible interest expenses, regardless of loan purpose - Support for major custodians, including Charles Schwab - Digital onboarding process - Floating and fixed-rate loan options available - Supports existing money managers, such as SMAs, UMAs and TAMPs </features> <target_audience> The primary target audience is independent financial advisors seeking to provide cost-effective, securities-backed lending solutions to their clients. </target_audience> <revenue_model> SyntheticFi charges a management fee of 0.50% of the amount borrowed by the client on an annual basis, subject to volume discounts and case-by-case negotiations. </revenue_model> ```

What does SyntheticFi do?

SyntheticFi provides a securities-backed lending solution that utilizes box spreads to offer interest rates 1% to 3% lower than traditional lenders, with no additional paperwork or credit checks required. This platform enables independent financial advisors to meet their clients' liquidity needs efficiently, allowing for loans starting at $10,000 while maintaining tax-deductible interest expenses.

Where is SyntheticFi located?

SyntheticFi is based in San Francisco, United States.

When was SyntheticFi founded?

SyntheticFi was founded in 2023.

Location
San Francisco, United States
Founded
2023
Employees
2 employees
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SyntheticFi

Score: 29/100
AI-Generated Company Overview (experimental) – could contain errors

Executive Summary

SyntheticFi provides a securities-backed lending solution that utilizes box spreads to offer interest rates 1% to 3% lower than traditional lenders, with no additional paperwork or credit checks required. This platform enables independent financial advisors to meet their clients' liquidity needs efficiently, allowing for loans starting at $10,000 while maintaining tax-deductible interest expenses.

syntheticfi.com100+
Founded 2023 – San Francisco, United States

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Company Description

Problem

Independent financial advisors often struggle to efficiently meet clients' liquidity needs due to the paperwork, delays, and higher interest rates associated with traditional securities-backed lending solutions. Existing options may also lack tax advantages or require clients to move assets between custodians.

Solution

SyntheticFi provides a securities-backed lending platform that enables independent financial advisors to offer clients lower interest rates and tax-deductible loans, starting at $10,000, without additional paperwork or credit checks. The platform leverages box spreads, a strategy using listed S&P 500 Index options, to access institutional borrowing markets and offer interest rates typically 1% to 3% lower than traditional lenders. SyntheticFi integrates with major custodians like Charles Schwab, allowing clients to maintain their existing accounts. The fully digital onboarding process streamlines loan setup, and advisors can offer both floating and fixed-rate loans tailored to client needs.

Features

Interest rates based on SOFR + a fixed spread, often lower than traditional securities-backed loans

Minimum loan size of $10,000

No credit checks or wet signatures required

Fully tax-deductible interest expenses, regardless of loan purpose

Support for major custodians, including Charles Schwab

Digital onboarding process

Floating and fixed-rate loan options available

Supports existing money managers, such as SMAs, UMAs and TAMPs

Target Audience

The primary target audience is independent financial advisors seeking to provide cost-effective, securities-backed lending solutions to their clients.

Revenue Model

SyntheticFi charges a management fee of 0.50% of the amount borrowed by the client on an annual basis, subject to volume discounts and case-by-case negotiations.