Securities Backed Lending | Loans Using Stock As Collateral

Securities Backed Lending | Loans Using Stock As Collateral

A stock-collateralized loan, also known as a securities backed lending, is a type of loan that uses the borrower’s investment portfolio as collateral. This type of loan is typically offered by specialized lending institutions, such as brokerage firms or banks, and can be used for a variety of purposes, including investing in additional securities, paying off debt, or covering unexpected expenses.

For high-net-worth individuals and business owners, this structure offers a strategic way to access liquidity while maintaining exposure to market performance. In simple terms, your investment portfolio becomes a line of credit — allowing you to raise funds quickly and efficiently, without triggering a taxable event or disrupting your long-term investment strategy.

At Platinum Global Bridging Finance, we specialise in arranging customised securities backed loans through our global lending network, helping clients unlock capital while retaining control of their assets.

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How Loans Using Stock as Collateral Work

When you use your securities as collateral, the lender assesses your portfolio’s composition, liquidity, and market stability to determine a loan-to-value (LTV) ratio — typically ranging from 50% to 80% depending on the quality of the holdings.

Once approved, the funds are released as a loan or revolving credit line. The borrower continues to own the securities and benefits from any market appreciation or dividends during the loan term.

Step-by-Step Process

1. Portfolio Assessment – Your publicly traded shares or managed portfolio are reviewed for eligibility.

2. Loan Structuring – The lender sets terms, including LTV ratio, interest rate, and repayment flexibility.

3. Pledge Agreement – Securities are held as collateral, usually in a custody account, but not sold or traded.

4. Disbursement – Funds are released quickly — often within days.

5. Loan Servicing – You continue to receive dividends and capital gains while servicing the interest or principal as agreed.

This streamlined process makes securities backed lending one of the fastest and most discreet ways to access significant liquidity.

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Advantages of Securities Backed Loans

Stock based loans provide a range of benefits that traditional bank loans or margin facilities cannot match.

1. Liquidity Without Liquidation

You can access capital without selling your stocks, avoiding capital gains tax and maintaining your long-term investment strategy.

2. Non-Dilutive Funding

Unlike raising capital through equity sales, securities backed loans don’t dilute ownership — a key advantage for entrepreneurs and family offices managing concentrated portfolios.

3. Flexible Use of Funds

Funds can be used for almost any purpose: purchasing real estate, funding a new business venture, consolidating debt, or financing a major purchase such as art, yachts, or aircraft.

4. Competitive Interest Rates

Because the loans are fully secured by liquid assets, interest rates are often lower than unsecured business loans or credit facilities.

5. Continued Market Participation

Borrowers retain ownership of their securities, allowing them to continue benefiting from dividends, appreciation, and voting rights.

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Comparing Securities Backed Loans and Margin Loans

In summary, securities backed lending offers greater flexibility, control, and tax efficiency compared to traditional margin loans.

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Who Can Benefit from Securities Backed Lending?

Share backed lending is particularly suitable for:

• High-net-worth individuals seeking short-term liquidity

• Business owners needing working capital without selling shares

• Investors with large single-stock holdings who want diversification flexibility

• Family offices managing intergenerational wealth

• Entrepreneurs pursuing time-sensitive investment opportunities

Whether the objective is business expansion, property acquisition, or lifestyle funding, using stock as collateral offers a structured, discreet, and efficient financing path.

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Risk Considerations

Like all leveraged strategies, securities backed loans carry certain risks. If the value of your collateral falls significantly, you may be required to post additional securities or repay part of the loan to maintain the agreed LTV ratio.

However, at Platinum Global Bridging Finance, we work exclusively with lenders who prioritise client protection and avoid forced liquidation whenever possible. Our facilities are structured to minimise market exposure and margin call risk, ensuring that clients maintain flexibility and control throughout the loan term.

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Why Choose Platinum Global Bridging Finance

With years of experience structuring high-value asset-backed finance across multiple jurisdictions, Platinum Global Bridging Finance offers an unmatched combination of speed, discretion, and flexibility.

We collaborate with international lenders to tailor securities backed lending facilities suited to each client’s specific asset profile and funding needs. Whether you hold a diversified portfolio or a concentrated position in a single stock, our team can arrange a competitive solution that delivers immediate liquidity while preserving your market upside.

Our process is transparent, confidential, and designed to complete within days — not weeks. We provide clear terms, competitive LTV ratios, and expert guidance from start to finish.

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Conclusion

Securities backed lending gives investors the freedom to leverage their portfolio without selling it, creating liquidity for personal or business use. It’s an intelligent, non-dilutive, and tax-efficient alternative to traditional borrowing.

If you’re seeking to use your stock as collateral to access cash quickly, discreetly, and without disrupting your portfolio, Platinum Global Bridging Finance can arrange a tailored securities backed loan or credit line that fits your goals.

Contact us today to discuss your requirements and explore how a securities backed loan can provide the liquidity you need — without liquidation.