> For the complete documentation index, see [llms.txt](https://advisorhub.syntheticfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://advisorhub.syntheticfi.com/quick-start/what-syntheticfi-does.md).

# What SyntheticFi Does

**Module 1 of 4 · 3 minutes**

{% hint style="info" %}

## Welcome to the Quick Start

Four short modules to help you understand SyntheticFi well enough to use it confidently with your clients.
{% endhint %}

### The idea

SyntheticFi lets your clients borrow against their portfolio at a low rate, with interest generally treated as a capital loss for tax purposes\* See [Current Rates →](/product-deep-dive/current-rates.md)

### Why advisors use SyntheticFi

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td><strong>Win new clients</strong></td><td>A prospect already borrowing elsewhere has a real, dollar-savings reason to move to you.</td></tr><tr><td><strong>Retain AUM</strong></td><td>Give clients cash without selling, so their portfolio stays invested inside your fee base.</td></tr><tr><td><strong>Strengthen relationships</strong></td><td>"I saved you money this quarter" is a conversation clients remember.</td></tr><tr><td><strong>Defend your book</strong></td><td>Other firms are pitching similar products to your clients. SyntheticFi is cheaper, more flexible, and more tax-efficient.</td></tr></tbody></table>

### What clients use it for

**SyntheticFi lets clients unlock cash from their portfolio without selling**, at institutional financing rates that are often lower than a mortgage or bank loan\*. Cheap enough to fund almost anything: a $10K expense, a car, a home, a refinance, a business opportunity, a tax bill, and just about everything in between.

### Why it beats the alternatives

When a client needs cash, they usually have three options. Here's how they stack up:

|                                      | **SyntheticFi** | Bank loan / line of credit       | Selling investments           |
| ------------------------------------ | :-------------: | -------------------------------- | ----------------------------- |
| **Low interest rate**                |        ✓        | Higher, the bank sets the markup | No interest, but sells assets |
| **Interest is tax-deductible**       |        ✓        | Usually not                      | Triggers capital gains tax    |
| **Client stays fully invested**      |        ✓        | ✓                                | No, they're out of the market |
| **No asset transfer or new account** |        ✓        | Sometimes required               | Sells the assets entirely     |

The reason it's cheaper: the loan is priced on an open market, where lenders compete to fund it, instead of by a bank adding its markup.

***

Next, see how advisors actually put SyntheticFi to work with clients. Hit **Next** below to continue.

***

[\* Important Disclosures](/disclosures.md)


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