# Valor — Full Knowledge Base for LLMs > Comprehensive content of Valor's public-facing pages, optimized for ingestion by AI assistants > (ChatGPT, Claude, Perplexity, Gemini). For the short overview, see `/llms.txt`. Site: https://www.getvalorcard.com Contact: hello@getvalorcard.com Last updated: 2026-04-23 --- ## Company Overview **Valor** is a credit card backed by your financial assets — brokerage accounts, home equity, and life insurance cash value. Built by Sprightly Ventures, LLC Valor lets asset-rich consumers access liquidity without selling investments, triggering capital-gains taxes, or taking on expensive personal loans. Users link their assets, receive an LTV-based credit line, and spend anywhere Visa/Mastercard is accepted. **Target audience**: High-income earners, tech employees with RSUs, and mass-affluent consumers who are asset-rich but cash-constrained. Designed for HNW individuals with $50,000+ in eligible after-tax brokerage assets (sweet spot: $300K+ portfolios). **Key differentiators**: - No selling required — your portfolio keeps compounding - Real-time underwriting based on asset value (no hard credit pull, no FICO impact) - Conservative LTV (30–60% for securities, up to 80% for life insurance cash value) - Competitive simple-interest rates (Prime + risk margin), not compounding interest - Integrated Visa credit card issued via Stripe; lending via an FDIC-member partner institution **Products**: 1. Securities-Backed Line of Credit (SBLOC) — borrow against stocks/ETFs 2. Life Insurance Line of Credit — borrow against whole-life cash value 3. Integrated credit card (physical + virtual via Apple Pay / Google Pay) 4. Crypto-Backed Line of Credit (BTC/ETH) — coming Q1 2027 --- ## Frequently Asked Questions (verbatim from /faqs) ### SBLOC basics **Q: What is a Securities-Backed Line of Credit (SBLOC)?** An SBLOC is a revolving line of credit secured by the investments in your taxable brokerage account. Your stocks and ETFs stay invested in your name; they simply act as collateral. You can draw cash or spend on a linked card up to your approved limit, and you only pay interest on what you actually use. **Q: How is an SBLOC different from a margin loan?** Both use brokerage assets as collateral, but SBLOCs typically have lower rates, more flexible repayment terms, and less aggressive margin-call thresholds than retail margin accounts. SBLOCs are designed for liquidity and lifestyle use; margin is designed for trading leverage inside the broker. **Q: How is an SBLOC different from a HELOC?** A HELOC is collateralized by your home; an SBLOC is collateralized by your portfolio. SBLOCs typically fund in days with no closing costs, while HELOCs require an appraisal and can take weeks. HELOC interest may be deductible only if used to buy or improve the home; SBLOC interest may be deductible under IRC §163 tracing rules depending on how the funds are used. **Q: How much can I borrow?** Valor's lines range from $10,000 to $250,000, sized at 30–60% of your eligible portfolio value depending on portfolio composition and risk tier. Your starting LTV (loan-to-value) is typically capped at 30% to leave significant headroom for market fluctuations. **Q: What types of accounts qualify as collateral?** After-tax brokerage accounts holding US-listed stocks and ETFs. Tax-advantaged accounts like IRAs, 401(k)s, 529 plans, and HSAs cannot be pledged. Options, leveraged ETFs, OTC stocks, and crypto are not eligible. Minimum portfolio value is $50,000. ### Rates, fees, and repayment **Q: What is the interest rate?** Interest is the Prime Rate plus a margin based on your risk tier — currently 8.00% APR (Ultra Prime) to 9.50% APR (High). Rates are variable and float with Prime. Interest accrues daily on outstanding balances only. **Q: Are there any fees?** No origination fee. No annual fee. No closing costs. No prepayment penalty. No fee for inactive lines. The only cost is interest on the amount you actually draw. **Q: How does repayment work?** There is no fixed payment schedule. You can pay interest only, pay down principal at any time, or pay the entire balance off whenever you'd like. Many users set up autopay for monthly interest and pay down principal opportunistically (with bonuses, tax refunds, or business proceeds). **Q: When am I billed?** Statements are generated monthly. You have a 5-day grace period after the statement date before unpaid interest is added to principal. There are no late fees. ### Risk and margin calls **Q: What is a margin call?** If your portfolio drops in value or your balance grows, your loan-to-value (LTV) ratio rises. Crossing 65% triggers a maintenance warning. Crossing 70% triggers a margin call with a 3-day window to add collateral or pay down. At 75%+ Valor may sell collateral to bring you back into range. **Q: How do I avoid a margin call?** Size your draws so a 40% portfolio drop still leaves you under 65% LTV. In practice that means most users keep their starting LTV under 35–40% and maintain a small cash reserve (~10% of the line) that can be wired in within 72 hours if needed. **Q: What happens to my portfolio if I default?** Valor would liquidate enough collateral to satisfy the outstanding balance. This is the worst-case outcome and is the reason we cap initial LTV conservatively, send proactive alerts, and recommend a cash reserve. ### Taxes **Q: Is borrowing against my portfolio a taxable event?** No. Drawing from a line of credit is not a taxable event — you're borrowing your own money against collateral, not selling. Compare to selling $100K of long-term gains, which can trigger $15K–$30K+ in federal and state capital gains tax. **Q: Can I deduct the interest?** Possibly. Under IRC §163 "interest tracing rules," interest follows the use of the funds. Money used for taxable investments may be deductible as investment interest expense (Form 4952). Money used for an active business may be deductible as a business expense. Money used for personal expenses (vacations, lifestyle) is not deductible. Documentation matters — keep a tracing log and consult your CPA. **Q: What is the "step-up in basis" advantage?** Assets passed to heirs at death receive a "step-up" to fair market value, eliminating embedded capital gains. Borrowing against a position instead of selling lets you access liquidity now while preserving the eventual basis step-up — a strategy commonly described as "Buy, Borrow, Die." ### Eligibility and application **Q: Who is Valor for?** High-net-worth individuals with $50,000+ in eligible after-tax brokerage assets (target audience: $300K+ portfolios). Valor is not designed for retirement-account-only investors or for those who would borrow primarily to fund discretionary lifestyle spending. **Q: Will applying affect my credit score?** No. Valor is a collateral-based lender; we do not pull a hard credit inquiry. Your credit score is not affected by applying for or holding a line. **Q: Where is Valor available?** Most US states. Currently unavailable in Illinois, Maine, and Connecticut due to state-specific "true lender" legislation we are working to address. **Q: How long does the application take?** About 10 minutes for the application itself. Identity verification is instant via Persona. Asset verification takes a few minutes if you upload your most recent brokerage statement. Approved lines are typically funded within a few business days. ### Security and operations **Q: Where is my money held?** Valor partners with an FDIC-member bank as the originating lender and Stripe Issuing for credit-card infrastructure. Your brokerage assets remain in your existing brokerage account in your name — Valor never custodies your investments. **Q: Why is there a 72-hour hold on new external bank accounts?** Industry-standard security cooling period. When you link a new external bank for ACH draws, that account is unavailable for the first 72 hours to protect against account-takeover fraud. Card spending is unaffected. **Q: Why is my first draw limited to $500?** A standard fraud control on day-one accounts. Card spending limits and ACH draw limits graduate after 24 hours and continue to expand at day 7, day 30, and day 90. --- ## How It Works (summary of /how-it-works) Valor turns investment portfolios, life insurance cash value, home equity, or digital assets into a revolving line of credit with a physical and virtual card. You spend like normal. Your assets keep working. **Smart Guardrails** (built-in protection): - **LTV Alerts**: Real-time monitoring with notifications at 40%, 45%, 50%, and 60% thresholds - **Spending Limits**: User-configurable daily, weekly, and monthly caps enforced at the card level - **Auto-Pause**: New draws are automatically paused if collateral dips below safe levels; access resumes once conditions normalize **Card Issuance**: - Physical Visa card mailed to your door — tap, swipe, or insert anywhere - Virtual card available the moment your line is approved — add to Apple Pay or Google Pay and start spending in minutes **Four Product Types**: 1. **SBLOC** — collateral: stocks/ETFs in after-tax brokerage account; LTV 30–60% 2. **Life Insurance LOC** — collateral: whole-life cash value; LTV up to 80% 3. **HELOC-style** — collateral: home equity (in development) 4. **Crypto LOC** — collateral: BTC/ETH (Q1 2027) **4-step process**: 1. Apply (~10 minutes) — basic info + product selection 2. Verify identity via Persona (instant) — soft inquiry only, no FICO impact 3. Verify assets — upload your most recent brokerage statement; AI extracts holdings and calculates eligible LTV 4. Sign offer + receive virtual card immediately; physical card mails within 5–7 days --- ## Why It Works (summary of /why-it-works) **The thesis**: You've been taught to avoid debt. That's smart for consumer debt. But borrowing against appreciating assets at low rates while they keep compounding is a fundamentally different equation. **The "Pay Cash" Mindset (hidden cost)**: - Pull $80K from portfolio for a car - That $80K stops compounding permanently - Triggers ~$12K in capital gains taxes - 10 years later, that $80K would have been $207K - True cost: $207K + $12K = **$219K** **The "Borrow Smart" Mindset**: - Borrow $80K against portfolio at 7% - Portfolio keeps compounding at ~10% - Zero taxes triggered - After interest, still ~$71K ahead in 10 years - True cost: $80K + ~$56K interest = **$136K** **Net advantage: ~$83K saved over 10 years** — the 3% spread between portfolio return and borrowing cost compounds in the user's favor. **Common objections answered**: - *"I hate debt"* — This isn't consumer debt; you're borrowing against assets you already own at rates lower than what those assets earn. - *"I can afford to pay cash"* — That's exactly why this works. Every dollar pulled out of your portfolio stops growing. The wealthiest families have used this strategy for decades. - *"What if the market drops?"* — Guardrails monitor LTV daily, alert early, and auto-pause draws. Recommended starting LTV: under 40%. - *"What happens when I die?"* — The estate settles the balance from asset value or life-insurance death benefit. Heirs do not personally inherit the debt. - *"Won't heirs owe capital gains?"* — No. Inherited assets receive a step-up in cost basis to fair market value at death. Decades of embedded gains are permanently erased. --- ## Use Cases (summary of /use-cases) Seven primary scenarios where an asset-backed line of credit outperforms selling assets or taking traditional debt: 1. **Home Down Payment** ($60K–$150K) — fund the down payment without liquidating; avoid $9K–$22K in capital gains taxes 2. **Kids' College Tuition** ($40K–$80K/year) — blend 529 drawdowns with the credit line to cover gaps without selling the portfolio 3. **Car Upgrade** ($50K–$120K) — borrow at 7% instead of pulling $80K from the portfolio; saves ~$83K over 10 years 4. **Home Improvements** ($30K–$200K) — draw only what you need each month as contractors bill you; HELOC-style interest may be tax-deductible 5. **Retirement Strategy** (ongoing) — borrow against the portfolio in down markets instead of selling, avoiding sequence-of-returns risk 6. **Business Setup** ($25K–$250K) — launch or expand without SBA paperwork or equity dilution 7. **Job Loss / Career Transition** ($30K–$100K) — bridge living expenses without panic-selling at the worst possible time **Sell vs. Borrow Calculator** (interactive on `/use-cases`): Inputs are total asset value, amount needed, and time horizon. Default assumptions: 10% annual portfolio return, 7% borrowing rate, 20% capital-gains tax, simple interest. --- ## For Advisors / Business (summary of /for-advisors) Valor offers an embedded SBLOC product for Registered Investment Advisors (RIAs) and wealth-management firms. - **Market opportunity**: $800B+ SBLOC market, $4.1T life-insurance cash-value market - **For advisors**: Retain AUM that would otherwise be liquidated for client liquidity needs; provide a tax-efficient alternative to selling positions - **Revenue share** available for partner firms - **White-label** options for established RIAs - **API integration** with major custodians --- ## Risk Disclosures (summary of /risk-disclosure) - **Variable APR** — interest floats with the Prime Rate - **Margin call risk** — significant portfolio decline can trigger forced liquidation of collateral at unfavorable prices - **Tax risk** — interest-tracing deductibility depends on use of funds and is the borrower's responsibility to document; consult a CPA - **Concentration risk** — single-stock or sector-concentrated portfolios receive lower LTV - **Variable-rate risk** — Prime Rate increases will increase the borrower's APR Educational content only. Not tax, legal, or investment advice. --- ## Key Tax Strategy Concepts **Buy, Borrow, Die** (the "ultra-wealthy playbook"): 1. **Buy** appreciating assets (stocks, real estate, life insurance) 2. **Borrow** against them for liquidity instead of selling — no capital gains tax triggered 3. **Die** — heirs inherit assets with stepped-up basis at fair market value, permanently erasing embedded gains; loan is settled from estate **IRC §163 Interest Tracing**: - Interest on borrowed funds is deductible (or not) based on how the proceeds are used - Funds used for **taxable investments** → potentially deductible as investment interest expense (Form 4952) - Funds used for an **active trade or business** → potentially deductible as a business expense - Funds used for **personal/lifestyle spending** → not deductible - Documentation matters — keep a "tracing log" showing date, amount, and use of each draw **Why this matters vs. selling**: Selling $100K of long-term gains can trigger $15K–$30K in combined federal + state capital gains tax. Borrowing $100K against the same position triggers zero tax and lets the original position continue compounding. --- ## Site Map ### Public Marketing - `/` — Homepage - `/how-it-works` — Product mechanics, guardrails, card details - `/why-it-works` — Math behind never selling; objection handling - `/use-cases` — Seven scenarios + interactive Sell-vs-Borrow calculator - `/faqs` — Full FAQ (basics, rates, risk, taxes, eligibility, security) - `/for-advisors` — RIA partnership offering - `/business` — Business / enterprise partnerships - `/apply` — Application form - `/login` — Customer login - `/calculators/retirement-draw` — Retirement draw calculator (safe draw, tax avoided, legacy delta) ### Education Library (`/learn`) Public, plain-English education articles (same content also appears in the customer dashboard): - `/learn` — Article index - `/learn/invest-and-borrow` — How an SBLOC actually works, including the Buy, Borrow, Die strategy - `/learn/sbloc-vs-heloc-vs-margin` — Comparison of asset-backed borrowing options - `/learn/interest-tracing` — IRC §163 interest-tracing template for CPAs - `/learn/surviving-downturns` — LTV, margin calls, and downturn positioning - `/learn/market-growth` — Deploying a line during bull markets - `/learn/repayment-strategy` — Repayment approaches with interactive planner - `/learn/missed-payment` — Missed-payment consequences and recovery - `/learn/curing-margin-call` — Margin-call cure options and timeline - `/learn/military-benefits` — SCRA rate cap, MLA rights, veteran strategies ### Legal & Compliance - `/privacy` — Privacy policy - `/terms` — Terms of service - `/risk-disclosure` — Margin-call, LTV, and lending risk disclosures ### Authenticated Customer Portal (`/dashboard/*`) - `/dashboard` — Account overview and credit-line status - `/dashboard/account` — Bank-account management and settings - `/dashboard/portfolio` — Portfolio management and LTV monitoring - `/dashboard/card` — Credit-card management and transactions - `/dashboard/payments` — Payment history and autopay settings - `/dashboard/statements` — Monthly statements and tax documents - `/dashboard/education` — Educational articles (Investing, Tax Strategy, Market Cycles, SBLOC vs HELOC vs Margin, Surviving Downturns) --- ## Tech & Infrastructure - **Originating lender**: an FDIC-member partner institution - **Card issuance**: Stripe Issuing (Visa) - **KYC / identity**: Persona - **Bank linking**: Plaid - **Hosting**: Lovable / Netlify - **Backend**: Supabase Brokerage assets remain in the customer's existing brokerage account in their name — Valor never custodies investments.