Stock Loans — Borrow Against Your Shares
A stock loan allows you to borrow against the value of publicly listed shares while retaining full ownership of the underlying position. You continue to receive dividends, benefit from any price appreciation, and avoid triggering a taxable disposal — while accessing capital for property, business, tax planning, or any other purpose.
At Platinum Global Bridging Finance, we arrange stock loans from $500,000 to $750 million against global listed equities across major exchanges including the NYSE, NASDAQ, LSE, Euronext, HKEX, and TSX. Facilities are available as both recourse and non-recourse structures, with interest-only repayment and bullet maturity.
| Feature | Details |
|---|---|
| Loan sizes | $500,000 – $750 million |
| Loan-to-value (LTV) | Up to 70% on global listed stocks |
| Interest rates | From 3 – 4% fixed |
| Repayment structure | Interest-only with bullet repayment |
| Recourse options | Both recourse and non-recourse available |
| Eligible collateral | Global listed equities — NYSE, NASDAQ, LSE, FTSE, Euronext, HKEX, TSX, ASX, and more |
| Typical turnaround | 1 – 2 weeks from application to funding |
| Credit checks | Not required — lending is asset-secured |
How Stock Loans Work
You pledge listed shares to an institutional lender, who advances a loan based on a percentage of the portfolio’s current market value. The shares are transferred to a third-party custodian or held under a lien for the duration of the loan. You retain beneficial ownership throughout — dividends are passed through, and you benefit from any capital appreciation.
The loan is structured as interest-only during the term, with the principal repaid as a lump sum at maturity. This keeps your monthly outgoings to interest payments only, giving you maximum flexibility over how and when you deploy the capital.
Single stock loans vs multi-stock loans
A single stock loan is secured against a concentrated position in one listed company. These are common among company founders, executives, and early investors who hold significant stakes in a single business. Because concentration risk is higher, lenders typically apply a lower LTV than they would for a diversified portfolio — but facilities are readily available for liquid, large-cap positions.
A multi-stock loan is secured against a diversified portfolio of listed equities. The broader the diversification and the higher the aggregate liquidity, the stronger the terms. A portfolio of 10+ blue-chip stocks across different sectors will typically attract a higher LTV and lower interest rate than a concentrated single-stock position.
What Stocks Are Eligible
Eligibility depends primarily on where the stock is listed, its daily trading volume, and its market capitalisation. We arrange stock loans against equities listed on major exchanges globally:
- North America: NYSE, NASDAQ, TSX (Toronto)
- Europe: LSE (London), Euronext (Paris, Amsterdam, Brussels), Deutsche Börse (Frankfurt), SIX (Zurich), Borsa Italiana (Milan), BME (Madrid), OMX (Stockholm, Copenhagen, Helsinki)
- Asia-Pacific: HKEX (Hong Kong), SGX (Singapore), ASX (Sydney), TSE (Tokyo), KRX (Seoul)
- Middle East & Africa: ADX (Abu Dhabi), DFM (Dubai), Tadawul (Riyadh), JSE (Johannesburg)
Large-cap stocks with high daily trading volumes attract the strongest terms — typically up to 70% LTV. Mid-cap and less liquid positions are still eligible but at reduced LTVs. AIM-listed, OTC, and thinly traded equities may qualify through specialist lenders — see our unlisted stock loans and OTC stock loans pages for those facilities.
Recourse vs Non-Recourse Stock Loans
We arrange both recourse and non-recourse facilities, and the choice between them is one of the most important structural decisions in any stock loan.
| Factor | Recourse | Non-Recourse |
|---|---|---|
| Personal liability | You are liable for any shortfall if the pledged shares are liquidated and don’t cover the outstanding balance | Liability is limited to the pledged shares — no personal exposure beyond the collateral |
| Typical LTV | Higher — up to 70% | Lower — typically 40 – 55% |
| Interest rate | Lower — lender has recourse to you personally | Higher — lender bears the downside risk |
| Margin calls | Yes — you must top up collateral if value drops | Varies — some non-recourse facilities have no margin calls |
| Best suited for | Borrowers confident in the stock’s stability who want maximum LTV | Borrowers who want downside protection, especially on concentrated or volatile positions |
Non-recourse stock loans are particularly attractive for founders and executives with large single-stock positions who want to monetise a portion of their holding while capping their personal risk. If the share price falls significantly and the lender liquidates the collateral at a loss, you owe nothing further.
Stock Loan Types
Single Stock Loan – Stock loan against a single stock.
Margin Loan Bridge – Short term bridge loan against a stock
- Portfolio Loan – Loan against a portfolio of shares
Non Recourse Stock Loans – Loan against a single stock where lender can rehypothicate the shares
Repos (share repurchase agreements) – Shares sold and bought back at a later date by client for cashflow
Block trades – Sale of discounted priced shares
Crypto Backed Loans – Loan against crypto holdings
Our lender network can also provide funding against trade-able corporate bonds, mutual funds, and other market-listed instruments.
If your asset carries a valid ISIN code, our international stock loan providers can source lending terms tailored to your needs.
You can read more here about to 10 benefits to using stock loans to help release liquidity from your shares.
What Types of Stock Loans Do Our Lenders Offer?
Non-Recourse Stock Loans
A non-recourse stock loan allows investors to borrow against the value of their shares with low interest rates while limiting risk. If the loan defaults, the lender’s only recourse is to take the pledged stock—your other assets remain completely protected.
This makes non-recourse loans ideal for clients who want quick liquidity without selling their shares and without exposing themselves to personal liability. Funds can be used for almost any purpose, including property purchases, business expansion, or personal investments.
Stock loans are used by the wealthy as a method of generating cash while not having to incur taxes by selling the shares. They can also benefit from the upside appreciation if the stock increases in value.
Margin Stock Loans
A margin stock loan allows investors to borrow funds from a brokerage firm using their own securities as additional collateral. The investor contributes a portion of the purchase price (the margin), while the broker lends the remaining amount.
The loan size is determined by the value of the securities held and the broker’s margin requirements. This type of financing increases an investor’s purchasing power and potential returns but also carries significant risk. If the pledging securities lose value and fall below the maintenance margin, the broker can issue a margin call, requiring the investor to add more funds or risk having their securities sold to cover the loan.
Margin loans can be used for any purpose, from investment strategies and opportunities to personal liquidity needs.
Repurchase (Repo) Stock Loans
A repurchase agreement (repo stock loan) is a short-term financing transaction where securities are sold with an agreement to repurchase them later, typically within 2 to 3 years, at a fixed price.
In practice, this functions as a collateralized loan—the borrower receives cash, while the lender holds the securities as security. The lender earns interest on the loan, and the borrower security gains liquidity without permanently selling their shares.
Repo stock loans are commonly used by financial institutions and investors for short-term liquidity management and are considered relatively low-risk due to the collateralization of the securities. Like other stock loans, funds can be applied to almost any purpose.
It is worth noting that stock loans can be used for business and personal use to help release equity.
What Can the Funds Be Used For
Stock loans are classified as unregulated lending, which means the proceeds can be used for a wide range of purposes without the restrictions that apply to regulated mortgage or consumer finance. Common uses include:
- Property acquisition: Use the loan to fund a purchase, deposit, or development — particularly useful when you don’t want to sell shares in a rising market. This pairs well with our bridging finance solutions.
- Business investment or acquisition: Fund a new venture, acquire a competitor, or inject working capital without diluting your equity holdings.
- Tax planning: Raise cash to meet a tax liability — capital gains, inheritance tax, or income tax — without triggering further disposals.
- Diversification: Deploy capital into other asset classes (property, private equity, alternative investments) while maintaining your equity position. Note that some lenders restrict re-investment into listed securities.
- Personal liquidity: School fees, estate settlement costs, divorce settlements, or bridging short-term cash flow gaps.
Margin Calls and Risk Management
Because stock loans are secured against assets whose value changes daily, lenders set maintenance thresholds. If the market value of your pledged shares drops below the agreed collateral coverage ratio, a margin call is triggered.
When a margin call occurs, you typically have three options: pledge additional shares, deposit cash to restore the ratio, or repay part of the loan. If you don’t act within the specified timeframe (usually 2 – 5 business days), the lender may liquidate some or all of the pledged shares to restore the coverage ratio.
We advise every client on structuring appropriate buffers to minimise margin call risk. This includes borrowing below the maximum available LTV, diversifying the pledged portfolio where possible, and stress-testing the position against historical volatility. For clients who want to eliminate margin call risk entirely, non-recourse facilities with no margin call provisions are available — though at a lower LTV and higher rate.
Case Studies
£100,000,000 Stock Loan — FTSE 100 Shareholding, London
The challenge: A London-based family office held a significant position in a single FTSE 100 company and needed to raise £100 million to fund a portfolio of commercial property acquisitions. Selling the shares would have triggered a substantial capital gains tax liability and the family wanted to retain exposure to the stock’s dividend yield.
The solution: We arranged a 36-month non-recourse stock loan at 55% LTV against the FTSE 100 holding, with interest-only quarterly payments and a bullet repayment at maturity. The non-recourse structure limited the family’s downside exposure to the pledged shares only.
The outcome: The family completed four commercial property acquisitions within 60 days of funding, retained their full equity position, continued receiving dividends throughout the loan term, and avoided an estimated £18 million CGT liability.
$75,000,000 Stock Loan — Diversified US Technology Portfolio, New York
The challenge: A US-based technology entrepreneur held a diversified portfolio of NASDAQ-listed stocks across 12 positions and needed $75 million to fund a majority acquisition of a private SaaS company. Traditional bank financing would have taken 8 – 12 weeks and required extensive income documentation the client preferred not to provide.
The solution: We sourced a 24-month recourse stock loan at 65% LTV against the diversified NASDAQ portfolio. The multi-stock structure and high aggregate liquidity allowed for a higher LTV than a single-stock facility. Funding completed in 11 business days.
The outcome: The client completed the acquisition ahead of a competing bidder’s deadline, retained full ownership and dividends on the pledged portfolio, and refinanced the stock loan 14 months later after the acquired company’s valuation had increased.
€35,000,000 Stock Loan — Listed European Equity Portfolio, Frankfurt
The challenge: A German-based industrial family held a €60 million portfolio of European blue-chip equities across Euronext and Deutsche Börse. They needed €35 million to settle an inheritance tax obligation within 90 days, but selling shares during a market downturn would have crystallised losses and reduced the portfolio’s long-term recovery potential.
The solution: We arranged a 12-month recourse stock loan at 58% LTV with interest-only quarterly payments. The diversified, high-liquidity nature of the portfolio allowed competitive pricing at 3.6% fixed.
The outcome: The inheritance tax was settled within the deadline. The European equity markets recovered over the following 9 months, and the family repaid the loan from a partial portfolio exit at significantly better prices than would have been achieved at the time of the original tax demand.
Stock Loans vs Other Financing Options
| Factor | Stock Loan | Broker Margin Loan | Traditional Bank Loan |
|---|---|---|---|
| Collateral | Listed shares | Listed shares | Property, income, or assets |
| Typical LTV | Up to 70% | Up to 50% | Up to 75 – 85% |
| Interest rates | From 3 – 4% fixed | Variable, often higher | Variable, base rate linked |
| Use of proceeds | Broadly unrestricted | Purchasing securities only | Restricted to stated purpose |
| Non-recourse option | Available | Rarely | Not standard |
| Credit check required | No — asset-secured | Yes | Yes — full affordability assessment |
| Turnaround | 1 – 2 weeks | Immediate (pre-approved) | 4 – 12 weeks |
| Global availability | Yes — multi-jurisdiction | Limited to broker’s markets | Domestic only (typically) |
Tax Considerations
Pledging shares as collateral for a stock loan is not treated as a disposal for capital gains tax purposes in most jurisdictions, so no CGT liability arises at the point of borrowing. This is one of the primary reasons high-net-worth investors use stock loans rather than selling holdings to raise cash.
However, if pledged shares are sold during a margin call or at loan maturity, a disposal does occur and any gains become taxable. Interest payments may or may not be tax-deductible depending on how the proceeds are used and the borrower’s jurisdiction.
Tax treatment varies by country and individual circumstance. We strongly recommend discussing any stock loan arrangement with your tax adviser before proceeding. We are finance brokers, not tax advisers.
How We Arrange Stock Loans
As an independent broker, we work across a global panel of institutional lenders, private banks, and specialist credit providers. Our process follows five steps:
- Initial consultation: We discuss your shareholding, borrowing requirement, intended use of funds, and preferred loan structure. This call is confidential and carries no obligation.
- Portfolio assessment: We assess your shares against lender eligibility criteria — exchange listing, market cap, daily volume, concentration — and identify the best-fit providers.
- Indicative terms: We obtain indicative terms from our panel, typically within 48 hours, and present you with the strongest options including LTV, rate, term, and recourse structure.
- Documentation and custody: Once you’ve selected a facility, we manage the documentation process between you, the lender, and the custodian. We review all terms on your behalf before you sign.
- Funding: Shares are transferred to the agreed custodian and funds are released to your nominated account. Typical turnaround from application to funding is 1 – 2 weeks.
Ready to discuss a stock loan?
Contact our team for a confidential, no-obligation consultation. We’ll assess your shareholding and provide indicative terms within 48 hours.
Get in touch — or call us directly at our London office: 64 Knightsbridge, SW1X 7JF.
Frequently Asked Questions
What is a stock loan?
A stock loan is a secured lending facility where you pledge listed shares as collateral in exchange for a cash loan. You retain ownership of the shares throughout the loan term, continue receiving dividends, and benefit from any price appreciation. The loan is repaid at maturity, at which point the shares are released back to you.
What LTV can I expect?
Up to 70% on global listed stocks. The exact LTV depends on the stock’s market cap, daily trading volume, volatility, and whether the position is concentrated or diversified. Blue-chip equities on major exchanges attract the highest LTVs; mid-cap or less liquid positions will be lower.
Do I need a credit check?
No. Stock loans are asset-secured — the lending decision is based on the quality and liquidity of the pledged shares, not your personal credit history or income. This makes stock loans accessible to borrowers who may not qualify for traditional bank lending.
What is a non-recourse stock loan?
A non-recourse stock loan limits your liability to the pledged shares. 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 facilities are available at a lower LTV and slightly higher rate than recourse structures.
Can I borrow against shares in a single company?
Yes. Single stock loans are common, particularly among founders, executives, and early investors with concentrated positions. The LTV will typically be lower than for a diversified portfolio due to concentration risk, but facilities are readily available for liquid, large-cap single-stock positions.
What happens during a margin call?
If the market value of your pledged shares drops below the lender’s required collateral coverage ratio, you’ll receive a margin call. You can respond by pledging additional shares, depositing cash, or repaying part of the loan. Some non-recourse facilities have no margin call provisions — the lender accepts the downside risk in exchange for a lower LTV.
Will I still receive dividends?
Yes. In most stock loan structures, you retain beneficial ownership of the pledged shares, including dividend rights and voting rights. The specific terms depend on the lender and custody arrangement.
Can international clients apply?
Yes. We arrange stock loans for clients globally, against shares listed on exchanges across North America, Europe, Asia-Pacific, the Middle East, and Africa. The loan can be denominated in the currency of your choice — GBP, USD, EUR, CHF, HKD, and others.
How quickly can a stock loan be arranged?
Typical turnaround from application to funding is 1 – 2 weeks. Straightforward cases with diversified, liquid portfolios on major exchanges can complete faster. Complex structures involving concentrated positions, restricted shares, or multiple jurisdictions may take longer.
Is a stock loan tax-efficient?
Pledging shares is generally not treated as a disposal for capital gains tax purposes, so no CGT arises at the point of borrowing. However, tax treatment varies by jurisdiction and individual circumstance. We recommend consulting your tax adviser before proceeding.
| Month | Interest | Dividends | Net cost | Balance |
|---|
| Share price drop | Portfolio value | Loan balance | Status |
|---|