First Interstate Bank of California's Trust and Private Banking Group is launching a revolving credit line, enabling clients to use commercial real estate assets as collateral for loans.
While commercial property-based loans are generally used to refinance or purchase real estate, loans from this product, called the Revolving Incom Line of Credit, can be used for any purpose.
Designed for Leverage
The product was developed for business owners and commercial property investors who want to leverage their commercial holdings for other investment purposes.
"Our goal is to give our clients the freedom to make other types of investments through their existing portfolio," said John Macon, manager of the Los Angeles-based bank's private banking division.
Private banking and trust clients can establish a line of credit up to $5 million.
Like a credit card limit, the product has a revolving feature. After making payments, clients can again borrow up to their credit limit.