Unlisted Stock Loans – Unlock Liquidity from Private Shares

Unlisted Stock Loans

Unlisted Stock Loans

An unlisted stock loan allows shareholders to borrow against private or pre-IPO company shares without selling them — releasing capital while retaining ownership, dividend rights, and any future upside if the company lists or is acquired. It bridges the gap between equity wealth on paper and cash you can actually use today, without waiting years for an IPO, trade sale, or buyback.

Platinum Global Bridging Finance is a specialist high-net-worth finance broker with 15+ years arranging bespoke lending solutions. We connect shareholders in private and pre-IPO companies with a whole-of-market panel of lenders who understand the specific risks — and opportunities — of unlisted equity as collateral.

How It Works

The loan is secured against your shareholding in a private company. In most cases you retain full ownership — the shares are pledged as collateral, not sold, and only transfer to the lender if the loan defaults under the agreed terms. Lenders assess the company’s valuation, your percentage ownership, share class and any transfer restrictions, and the likely path to a future liquidity event (IPO, acquisition, secondary sale, or dividend payout). From this, they set a loan-to-value ratio and structure repayment terms around it.

Who Unlisted Stock Loans Are For

This is a specialist facility, typically used by:

  • Founders and early employees holding a significant equity stake in a company that hasn’t yet listed
  • Senior executives with vested stock options who need capital without triggering an early sale or exercise decision
  • Early investors and angels whose capital is tied up in a company years from a confirmed exit
  • High-net-worth individuals using a concentrated private shareholding as part of a broader wealth strategy

You’ll generally need a verifiable shareholding worth £2 million or more, with clear documentation of ownership and, where applicable, any vesting or transfer restrictions attached to it, in order to support a facility of £1 million or above.

Loan Terms

  • Loan size — from £1 million up to £500 million
  • Loan-to-value — typically 20–50% of verified share value, lower than listed-stock lending to reflect illiquidity and valuation uncertainty. Well-capitalised companies with a strong shareholder track record and a clear path to exit can command the higher end of this range.
  • Minimum shareholding — given loan sizes start at £1 million, you’ll generally need a verifiable shareholding worth at least £2–5 million, depending on the LTV a lender is prepared to offer
  • Rates — typically 8–15% p.a., reflecting the additional risk premium over listed securities lending
  • Term — usually 1–3 years, often structured to align with an anticipated liquidity event
  • Time to funding — typically 2–6 weeks depending on the complexity of the shareholding and how quickly documentation can be verified

For example, shares valued at £5 million could realistically secure a loan of £1 million to £2.5 million, depending on the company’s fundamentals and the lender’s risk appetite.

What Lenders Actually Assess

Unlisted stock loans are underwritten very differently from a standard Lombard loan against listed securities, because there’s no public market price to rely on. Lenders in this space focus on three things:

  • Valuation — based on the company’s most recent funding round, an independent third-party appraisal, or recent secondary market transactions. Where none of these exist, lenders will typically apply a wider discount to reflect the added uncertainty.
  • Transferability — whether the shares can actually be pledged as security. This depends on the company’s articles of association, any shareholder agreement, and pre-emption or right-of-first-refusal clauses that could restrict a lender’s ability to enforce against the shares if needed.
  • Liquidity outlook — how realistic and near-term the path to an exit actually is. A company with an announced IPO timeline or active secondary market trading will typically secure better terms than one with no visible exit on the horizon.

If your shares were granted as options or RSUs rather than held outright, eligibility depends heavily on your vesting schedule and any post-termination exercise windows — lenders will want to see that the underlying shares are fully vested and unencumbered before they’ll consider them as security. This is worth raising early in the conversation, as it’s one of the most common reasons a facility takes longer to structure than expected.

Example Holdings

If you hold private company stock — especially in growth or pre-IPO firms — you may be eligible. Companies we’ve arranged facilities against include Shein, Databricks, Stripe, Chime, Klarna, Reddit, Discord, Instacart, Fanatics, VinFast, Oatly, Impossible Foods, Rubrik, ThoughtSpot, Cohesity, Automation Anywhere, Gupshup, Patreon, Turo, Flexport, Monzo, Starling Bank, and Revolut. This list is illustrative — other unlisted shareholdings may also qualify.

The Process

  1. Initial consultation — we discuss your shareholding, funding goals, and timeline
  2. Valuation and due diligence — the lender assesses your shareholding and the company’s fundamentals
  3. Loan offer — terms, LTV, and interest rate are presented
  4. Legal structuring — agreements are finalised, including collateral terms
  5. Funding — loan proceeds are released directly to you

Why Demand for This Kind of Lending Is Growing

Companies are staying private for longer, which means more founders, employees and early investors are sitting on equity wealth with no near-term path to cash. According to EquityZen’s Q2 2026 private market report, secondary transaction volume in private companies is projected to reach $250 billion in 2026, driven largely by companies over ten years old — the very cohort with the largest pools of long-held, fully vested equity. That growth is exactly why non-bankable collateral like private equity stakes and pre-IPO stock has become a mainstream, if still specialist, part of the private credit market.

Risks to Understand

As with any secured lending, there are real risks to weigh before proceeding. The value of your shares can go down as well as up, and a significant fall in the company’s valuation could trigger a request for additional collateral or partial repayment. Because the loan is secured against a single company, there’s no diversification to offset downside exposure — unlike a portfolio-based Lombard loan. Working with a reputable broker and regulated lenders helps mitigate concerns like valuation disputes or predatory terms, but the underlying risk of a concentrated position remains yours to weigh.

Borrowing against shares may also be more tax-efficient than selling — no capital gains tax is triggered since the shares aren’t disposed of, and loan proceeds are typically treated as debt rather than income — but tax treatment depends on your individual circumstances and jurisdiction. We always recommend speaking with a tax adviser before structuring a loan of this kind; we are finance brokers, not tax advisers.

Frequently Asked Questions

Can I lose ownership of my shares?
In most cases, no — you retain ownership throughout the loan term. The shares are pledged as collateral rather than sold, and only transfer to the lender if the loan defaults under the agreed conditions.

How is my company valued if it isn’t publicly traded?
Lenders typically use your company’s most recent funding round, an independent third-party valuation, or recent secondary market transaction data. Where none of these exist, expect a more conservative loan-to-value ratio.

Can I use vested stock options or RSUs as collateral?
Often, yes, provided they’re fully vested and free of transfer restrictions that would prevent them being pledged. Unvested options generally can’t be used until the vesting conditions are met.

Is this only for billionaires or major shareholders?
No, but this is a facility for significant shareholdings — loans start at £1 million, which generally means a verifiable shareholding of £2 million or more depending on the LTV offered. It’s aimed at founders, senior executives, and early investors with a substantial concentrated position, rather than smaller retail-level holdings.

Are there tax implications?
Borrowing against shares is generally more tax-efficient than selling, since no disposal takes place. However, tax treatment depends on your personal circumstances — we recommend speaking with a tax adviser before proceeding.

Why Work With Platinum Global Bridging Finance

We are brokers, not lenders. Our role is to give you whole-of-market access to lenders comfortable with unlisted equity risk, negotiate terms on your behalf, and manage the legal and structural complexity — including shareholder agreements, transfer restrictions, and multi-party cap tables — so the process moves as quickly as the underlying documentation allows. Every transaction is handled in confidence.

If you’re a company (rather than an individual shareholder) looking to raise pre-listing bridge capital instead, that’s a different product — see our Pre-IPO Loans for companies page.

Speak to a Specialist

Contact us today for a confidential, no-obligation conversation about how an unlisted stock loan could work for your shareholding.

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    Frequently Asked Questions About Unlisted Stock Loans

    What is an unlisted stock loan?

    An unlisted stock loan allows shareholders to borrow against private or pre-IPO company shares without selling them. It’s a way to unlock liquidity while retaining ownership.

    Who qualifies for an unlisted stock loan?

    Borrowers generally need to hold a minimum value of shares (often £250,000 or more) in a private company, with ownership and documentation that can be verified.

    How much can I borrow against my unlisted shares?

    Most lenders offer 20% to 50% of the verified share value, depending on factors like company performance, liquidity prospects, and risk profile.

    How are unlisted company shares valued for a loan?

    Valuation is based on the company’s financial statements, recent fundraising rounds, private valuations, and growth outlook. Lenders want a clear picture of future liquidity.

    Do I lose ownership of my shares if I take a loan?

    No. In most cases, borrowers retain ownership of their shares, which are pledged as collateral. Ownership only transfers if the loan defaults under agreed conditions.

    Are unlisted stock loans risky?

    While any secured loan carries some risk, working with a reputable broker and regulated lenders helps mitigate concerns such as valuation disputes or predatory terms.

    How long does it take to secure an unlisted stock loan?

    The process typically takes 2 to 6 weeks, depending on the size of the loan, company complexity, and the level of due diligence required by the lender.

    What can loan proceeds be used for?

    Loan proceeds can be used for a wide range of purposes including business expansion, property purchases, debt restructuring, or personal financial planning.

    Are unlisted stock loans tax efficient?

    Yes. Since you’re borrowing rather than selling shares, proceeds are usually not subject to capital gains tax, making them more tax-efficient than liquidating equity.

    Why should I use a broker instead of going directly to a lender?

    A broker like Platinum Global Bridging Finance gives you access to a wider network of lenders, negotiates better terms, and ensures you avoid fraudulent operators in this niche.

    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:

    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.

    Unlisted Stock Loans | Unlock Liquidity from Private Shares 9 July 2026