Securities Backed Lending | Borrow Against Your Portfolio Without Selling

Securities Backed Lending

Securities backed lending — borrow against your investment portfolio with Platinum Global Bridging Finance

Securities backed lending allows investors to raise capital against publicly traded shares, bonds, and ETFs without liquidating their holdings. You retain full ownership of your portfolio, continue receiving dividends and any capital appreciation, and avoid triggering a taxable disposal — while accessing a cash loan or revolving credit facility backed by your investments.

At Platinum Global Bridging Finance, we arrange securities backed loans from £250,000 to £750 million for high-net-worth individuals, family offices, entrepreneurs, and institutional investors. Facilities are structured as interest-only with bullet repayment, and we can source non-recourse options where your liability is limited to the pledged collateral.

How Securities Backed Lending Works

The mechanics are straightforward. You pledge eligible securities — typically blue-chip equities listed on the FTSE, NYSE, or NASDAQ — to an institutional lender. The lender assesses the portfolio’s market value, volatility profile, and daily trading volume, then advances a loan based on a percentage of that value, known as the loan-to-value ratio.

For diversified portfolios of liquid, large-cap equities, LTVs of 50 – 65% are standard. The securities remain in your account (or are transferred to a custodian), and a lien is placed over them for the duration of the loan. You continue to receive dividends and benefit from any price appreciation throughout the term.

Repayment is typically structured as interest-only during the loan term, with the principal repaid as a lump sum (bullet repayment) at maturity. This keeps monthly outgoings low and gives borrowers maximum flexibility over how they deploy the capital.

What happens if markets fall

Because the loan is secured against liquid securities whose value fluctuates daily, lenders set maintenance thresholds. If your portfolio value drops below the agreed collateral coverage ratio, a margin call is triggered — you’ll be required to pledge additional securities, deposit cash, or repay part of the loan to restore the ratio. Understanding margin call mechanics before you borrow is essential, and we advise every client on structuring appropriate buffers to minimise this risk.

Eligible Securities and How They Affect Your Terms

Not all securities are treated equally by lenders. The type, liquidity, and volatility of the assets you pledge directly determine the LTV, interest rate, and margin call thresholds you’ll receive.

• Blue-chip equities (FTSE 100, S&P 500, NASDAQ-100): The most widely accepted collateral. High daily trading volumes and lower volatility mean lenders offer the strongest terms — typically 50 – 65% LTV with rates from 3%.
• Mid-cap and growth stocks: Accepted by some lenders but at reduced LTVs (often 30 – 50%) and higher interest rates, reflecting the greater price volatility and lower liquidity.
• Concentrated single-stock positions: If your portfolio is heavily weighted toward one company, lenders will discount the LTV significantly to account for concentration risk. We can source specialist single stock loan facilities for these situations.
• AIM-listed and unlisted equities: Fewer lenders will advance against AIM or unlisted stocks, but facilities do exist at lower LTVs. Pre-IPO positions can also be financed — see our pre-IPO lending page.
• Corporate and government bonds: Typically attract higher LTVs than equities (up to 70 – 80%) because of their lower volatility, though rates vary by credit rating and duration. See our institutional bond loans page for dedicated facilities.

Non-Recourse Securities Backed Loans

In a standard (recourse) facility, if your pledged securities are liquidated and the proceeds don’t cover the outstanding loan balance, you remain personally liable for the shortfall. A non-recourse facility limits your exposure: the lender’s only remedy is to sell the pledged securities. If that sale doesn’t cover the debt, you owe nothing further.

Non-recourse structures are available on qualifying transactions and are particularly attractive for borrowers who want downside protection or who are pledging a concentrated position they cannot easily diversify. The trade-off is typically a lower LTV and slightly higher interest rate compared to a recourse facility. We advise on both structures and help clients choose based on their risk appetite and the specific use of funds.

What Can the Funds Be Used For

Securities backed lending is classified as unregulated borrowing in the UK, which means there are fewer restrictions on how the proceeds are used compared to regulated mortgage finance. Common uses include:

• Property acquisition: Use the loan as a deposit or to purchase outright, avoiding the need to liquidate investments in a rising market. This pairs well with our bridging finance solutions for time-sensitive purchases.
• Business expansion or acquisition: Access working capital, fund an acquisition, or invest in a new venture without disrupting your investment portfolio.
• Tax planning: Raise cash to meet a tax liability without selling securities at an inopportune time or triggering additional capital gains.
• Bridging short-term cash flow gaps: Cover a temporary liquidity need — school fees, estate settlement costs, or inter-deal cash flow — while keeping long-term positions intact.
• Portfolio rebalancing: Fund new investment positions using capital raised against existing holdings, though lenders may restrict the use of proceeds for purchasing additional securities.

Indicative Deal Scenarios

The following examples illustrate how facilities are typically structured. Every transaction is bespoke — actual terms depend on portfolio composition, borrower profile, and market conditions at the time of application.

Securities Backed Lending vs Other Financing Options

Margin loans are designed specifically for buying more securities and are regulated by the FCA. Securities backed lending is broader — the capital can fund property, business, or personal needs — and sits outside FCA regulation, giving both lenders and borrowers more structural flexibility. Traditional loans require income-based affordability assessments and property valuations, which adds time and may exclude borrowers with non-standard income profiles.

Tax Considerations

Borrowing against securities is not treated as a disposal for capital gains tax purposes, so no CGT liability arises at the point of borrowing. This is one of the primary reasons high-net-worth investors use SBL rather than selling holdings to raise cash.

However, if pledged securities are sold during a margin call or at loan maturity, a disposal does occur and any gains become taxable. Interest payments on the loan may or may not be tax-deductible, depending on how the proceeds are used — interest on capital used for business purposes may qualify for relief, while interest on personal expenditure typically does not.

We strongly recommend discussing any securities backed lending arrangement with your tax adviser before proceeding. We are finance brokers, not tax advisers, and the information above is general guidance rather than advice specific to your circumstances.

How We Arrange Securities Backed Loans

As an independent broker, we work across a panel of institutional lenders, private banks, and specialist credit providers to structure the most competitive facility for each client’s situation. Our process typically follows four steps:

• Initial consultation: We discuss your portfolio composition, borrowing requirement, intended use of funds, and preferred loan structure. This call is confidential and carries no obligation.
• Portfolio assessment and lender matching: We assess your securities against lender eligibility criteria, identify the best-fit providers, and obtain indicative terms — usually within 48 hours.
• Term negotiation and documentation: Once you’ve selected a facility, we negotiate final terms on your behalf and manage the documentation process between you, the lender, and any custodian.
• Funding: Typical turnaround from application to funds in your account is 1 – 2 weeks, depending on portfolio complexity and lender due diligence requirements.

Frequently Asked Questions

What is securities backed lending?

Securities backed lending is a form of asset-backed borrowing where you pledge publicly traded shares, bonds, or funds as collateral for a loan. You retain ownership of the securities throughout the loan term and continue to receive dividends and any capital appreciation.

What LTV can I expect?

For diversified portfolios of blue-chip equities listed on the FTSE, NYSE, or NASDAQ, LTVs of 50 – 65% are standard. Lower-liquidity or higher-volatility assets will attract lower LTVs. We assess each portfolio individually and provide an indicative LTV within 48 hours.

How quickly can funds be released?

Most facilities complete within 1 – 2 weeks from application. Straightforward cases with diversified, liquid portfolios can complete faster; complex structures involving concentrated positions or non-standard collateral may take longer.

Is securities backed lending regulated in the UK?

Generally, no. Securities backed lending is treated as unregulated borrowing in the UK, which means it falls outside FCA oversight. This provides greater structural flexibility but also places additional importance on working with an experienced broker who understands the risks and can advise on appropriate loan structures.

What is a non-recourse facility?

A non-recourse loan limits your liability to the pledged securities. If the lender liquidates the collateral and the proceeds fall short of the outstanding balance, you are not personally liable for the difference. Non-recourse options are available on qualifying facilities, typically at a lower LTV and slightly higher rate.

What happens during a margin call?

If the market value of your pledged securities drops below the lender’s required collateral coverage ratio, you’ll receive a margin call. You can respond by pledging additional securities, depositing cash, or repaying part of the loan. If you don’t act within the specified timeframe, the lender may sell some or all of the pledged securities to restore the ratio.

Can I use the funds to buy more securities?

Most SBL facilities are structured as non-purpose loans, meaning the proceeds can be used for a wide range of needs — property, business, personal expenses — but typically exclude purchasing additional securities. If you need capital specifically to buy more shares, a margin loan through your broker may be more appropriate.

Will I still receive dividends?

Yes. In most SBL structures, you retain beneficial ownership of the pledged securities, including the right to receive dividends and vote at shareholder meetings. The specific terms depend on the lender and custody arrangement.

Related Services

Securities backed lending is one part of our broader asset financing capability. Depending on your portfolio and objectives, you may also benefit from:

• Stock Loans — single and multi-stock facilities against listed equities
• Lombard Loans — flexible credit lines secured against diversified portfolios
• Pre-IPO Loans — financing against shares in companies awaiting public listing
• Unlisted Stock Loans — lending against privately held or thinly traded equities
• Institutional Bond Loans — capital raised against corporate and government bond holdings
• Portfolio Loans — borrowing against a diversified investment portfolio
• Crypto Backed Loans — lending against Bitcoin, Ethereum, and other digital assets

About Platinum Global Bridging Finance

Platinum Global Bridging Finance is a specialist high-net-worth finance broker with over 15 years of experience arranging bespoke lending solutions. We operate from offices at 64 Knightsbridge, London SW1X 7JF and Railway House, Urmston, Manchester M41 6NA, serving clients across the UK, Europe, and internationally.

Our securities backed lending team works with institutional lenders, private banks, and specialist credit providers to structure competitive, transparent facilities. Every client receives a named adviser, a clear explanation of terms and risks, and ongoing support throughout the loan term.