Asset Financing Hub

Asset Financing Hub

Asset Financing Hub

Asset financing refers to borrowing funds using financial assets as collateral. Instead of selling valuable investments such as listed shares, bonds, or funds, borrowers can unlock liquidity while keeping their portfolios intact. This type of financing is commonly used by high-net-worth individuals, business owners, and investors who need fast access to capital without disrupting long-term investment strategies.

Securities-based lending sits between traditional bank lending and private asset-backed finance. It prioritises the strength and liquidity of the collateral rather than income or credit scoring, which allows for faster approvals and more flexible terms. For a full guide to how this works across markets, see our page on securities backed lending.

For clients specifically looking to borrow against listed shares, explore our dedicated Stock Loans solutions

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How Borrowing Against Assets Works

The process is straightforward. A lender evaluates the quality, liquidity, and volatility of the pledged assets and then offers a loan based on a percentage of their market value. Once the loan is agreed, the borrower receives capital quickly while the securities remain in place as collateral.

This process is particularly common when arranging loans against listed equities.

Loan terms, interest rates, and loan-to-value ratios depend on the asset type, jurisdiction, and structure of the transaction. Unlike traditional lending, underwriting focuses primarily on the asset rather than the borrower’s financial history.

Securities-Backed Lending in Brief

A securities-backed loan is secured on a portfolio of listed shares, bonds or funds rather than on property or your income. The lender sets a loan-to-value (LTV) against the portfolio, usually between 50% and 70% for listed equities, and lends up to that figure. Higher-quality collateral such as government bonds can support more, while concentrated or volatile single stocks are lent against more cautiously.

Most facilities are interest-only, with the capital repaid at the end of the term. Interest is typically a benchmark rate plus a lender margin. If the portfolio falls enough to breach the lender LTV limit, you may be asked to add collateral or repay part of the loan, which is known as a margin call. Borrowing below the maximum LTV leaves a buffer.

The shares stay yours, and you normally keep any dividends. Because borrowing is not a sale, it does not in itself trigger capital gains tax, though your own position depends on your circumstances and you should take tax advice.

For the detail, including costs, worked examples and how long a facility takes, see our Stock Loans guide or the UK guide to loans against shares.

Who Uses Asset Financing Lending?

Typical borrowers include entrepreneurs, investors, property developers, and corporate shareholders. Many hold substantial investment portfolios but prefer not to liquidate positions due to tax implications, market timing, or long-term growth strategies.

This type of financing is often used to fund property purchases, business expansion, acquisitions, debt restructuring, and lifestyle liquidity.

One of the most popular options for shareholders is using a stock loan to release capital

Types of Asset Financing That Can Be Used as Collateral

A wide range of financial instruments may be eligible as collateral, including:

  • Publicly listed shares

  • Bonds and fixed income securities

  • Investment funds and ETFs

  • Concentrated equity positions

  • Restricted or pre-IPO shares (case dependent)

Different securities come with different lending criteria, risk models, and loan-to-value ratios.

Listed equities typically offer the fastest approvals through dedicated Stock Loan structures

Common Use Cases for Asset Financing

Borrowers use securities financing for many strategic purposes:

  • Property purchases and bridging finance

  • Business investment or expansion

  • Portfolio diversification

  • Debt consolidation

  • Tax planning and liquidity events

This form of lending provides flexibility for clients who want capital quickly without disrupting long-term investment positions.

These scenarios are especially common for clients using Stock Loans to unlock liquidity.

Advantages of Asset-Based Lending Over Traditional Bank Loans

Traditional banks often require lengthy underwriting, income verification, and strict affordability assessments. Securities financing focuses primarily on asset strength, enabling faster decisions and greater flexibility.

Key advantages include:

  • Faster approvals

  • Flexible repayment structures

  • No forced sale of investments

  • Cross-border lending solutions

  • Asset-first underwriting approach

Borrowers seeking speed often choose specialist stock loan lenders.

Global Lending Solutions for High-Net-Worth Clients and Businesses

Securities-backed lending is inherently international. Many borrowers hold portfolios across multiple jurisdictions, and specialist lenders can structure cross-border solutions to accommodate global assets and borrowers.

This allows clients to access liquidity regardless of where their securities are held.

We arrange global Stock Loans across major financial markets.

Understanding Loan-to-Value Ratios and Risk Management

Loan-to-value ratios vary depending on asset liquidity, volatility, and concentration risk. Blue-chip equities may achieve higher LTVs than smaller or more volatile holdings.

Risk management measures ensure both borrower and lender are protected throughout the loan term.

Typical LTVs for Stock Loans depend on the share portfolio and jurisdiction but are usually in the 50% to 70% LTV range.

Fast Access to Liquidity Without Selling Investments

One of the biggest advantages of securities financing is speed. Transactions can often complete far quicker than traditional lending because underwriting focuses on the asset value and marketability.

This allows investors to seize opportunities quickly while maintaining their investment exposure.

Discover how quickly capital can be released through Stock Loans.

Explore Our Asset Financing Solutions

We arrange a wide range of securities-based lending solutions tailored to different asset types and borrower needs. Each product is designed to provide fast, flexible access to capital without disrupting long-term investment strategies.

Frequently Asked Questions

What is the difference between a stock loan and a Lombard loan?

A stock loan is usually secured on a single stock or a concentrated shareholding, while a Lombard loan is secured on a diversified portfolio of shares, bonds and funds. See our Stock Loans and Lombard Loans pages.

Can I borrow against shares that are not listed or are restricted?

Sometimes, but they are assessed case by case and usually at a lower LTV. See Unlisted Stock Loans and 144 Restricted Stock Loans.

Can I borrow against shares held outside the UK?

Yes. Lenders can structure facilities across jurisdictions, and we cover regional markets including Europe, Asia and the Americas.

How much can I borrow against my shares?

It depends on the portfolio, but LTVs usually run from 50% to 70% for listed equities. Our UK guide to loans against shares has a table by asset type.

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    Related Stock Loan Pages

    Stock Loans: our main stock loans page

    Stock Loans Europe: borrowing against shares listed on European exchanges, for UK and European investors

    Stock Loans Asia: lending against Asian-listed shares and for Asia-based borrowers

    Stock Loans Americas: lending against US and wider Americas-listed shares

    Stock Loans Nordics: facilities for holders of Nordic-listed shares

    Stock Loans Australia: lending against Australian and Oceania-listed shares

    Stock Loans UAE: facilities for holders of shares in the UAE and wider Gulf region

    Stock Loans Africa: lending against African-listed shares and for African borrowers

    Asset Financing | HUB 8 May 2026