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Case Study
4 mins
SyntheticFi Supports International Clients When Banks Are Unwilling to Lend
Divergent Capital Asset Management is able to provide securities-backed lending to international clients with SyntheticFi, at lower interest rates.

Joseph Wang
Apr 28, 2025
Key Takeaways
Problem: Most banks do not offer Securities-Backed Line of Credits (SBLOC, also known as Pledged Asset Lines) to international clients. That has been a problem for Javier at Divergent, ever since he started working with wealthy families from Latin America.
Solution: SyntheticFi provides Securities-Backed Lending to Javier’s international clients, with a lower interest rate and a higher release rate than bank products.
Outcome: This helps Javier differentiate from other RIA firms when serving international wealth in Miami.

Banks won’t lend to international clients
Javier Loreto, Director of Private Wealth Management at Divergent Capital Asset Management, is based in Miami, Florida. His clients include many HNW and UHNW families based in Latin America. Divergent uses Charles Schwab as the custodian for most of the client assets.
When planning for the complex needs of his international clients, Javier has often looked for liquidity solutions such as Securities-Backed Lending. While there are quite a few banks that provide Securities-Backed Lending on the Schwab platform, they all limit their product to US residents. Because most of Javier’s clients are based in Latin America, they don’t qualify despite sizable investments held at Charles Schwab.
While Javier’s clients qualify for the margin feature at their custodians, the interest rate on custodian margin features is very high, "it's just so expensive".
Securities-Backed Lending with international coverage
Javier Loreto discovered SyntheticFi through Sora Finance, a lending partner of SyntheticFi. Javier was initially intrigued by the low interest rate that SyntheticFi advertises, but he quickly discovered that SyntheticFi offers much more.
"I've checked with every bank that offers SBLOC products. None of them provide SBLOC to my clients, because they live abroad, like in Columbia or Peru. Apparently, they only work with US residents. SyntheticFi filled this gap for us. Not only does SyntheticFi provide unbeatable interest rates; they support almost every country in Latin America."
Here are things that Javier liked about SyntheticFi
Say yes to borrowing needs of his international clients living in countries like Peru, Columbia, and Spain, so his clients can stay fully invested
Beat other banks and custodians on lending rates. SyntheticFi interest rate is around SOFR + 0.50%, which is even lower than the margin rate of Interactive Brokers, known to be the one of the lowest in the industry
Provide flexibility to his clients since SyntheticFi offers a release rate as high as 85% by working with the portfolio margin program at Schwab
Bring account over from Interactive Brokers
J and M are a married couple and a financial planning client of Javier. They are business owners with an LLC established in the US. Javier has always wanted to upgrade the relationship and manage more of the investments for this household, including the business accounts.
While Javier's firm primarily uses Charles Schwab as custodian, Javier was not able to convince his client to move their business account from Interactive Brokers to Charles Schwab. J and M use the margin feature at Interactive Broker to provide working capital financing for their business, and really values the low margin rates provided by Interactive Brokers.
Javier used SyntheticFi to convince the client to move from Interactive Brokers to Charles Schwab, because SyntheticFi allows the client to get a lower cost of financing at Charles Schwab compared to their existing setup at Interactive Brokers.
"I was not sure what it would be like to transfer their LLC margin account from Interactive Brokers to Schwab. SyntheticFi helped me move the account to Schwab without needing to liquidate any investments. It was a seamless process and we were able to quickly transfer the margin balance to SyntheticFi."

Differentiated solution for international wealth management
SyntheticFi has become the go-to borrowing option for Javier. As Miami welcomes more international wealth, SyntheticFi gives Javier a unique edge to differentiate from other financial advisors.
(Refer to this case study to see how SyntheticFi offers differentiated real estate financing for clients.)