Securities Financing

What Is Securities Lending and Securities Financing?

Securities lending and securities financing refer 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 clients specifically looking to borrow against listed shares, explore our dedicated Stock Loans solutions

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How Borrowing Against Securities 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.

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Who Uses Securities-Based 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

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Types of Securities 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

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Common Use Cases for Securities 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.

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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.

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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.

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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 60% to 65% LTV range.

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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.

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Explore Our Securities-Backed 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.

• Stock Loans

• Securities-Backed Lending

• Single Stock Loans

• 144 Restricted Stock Loans 

• Lombard Loans
• Unlisted Stock Loans