Securities Backed Lending and Stock Loans

By on 30 May 2025   /   Blog  
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Securities Backed Lending and Stock Loans

Securities Backed Lending and Stock Loans: What You Need to Know In today’s market, liquidity is power. For high-net-worth individuals and investors with sizable portfolios, securities backed lending—also referred to as stock loans—offers a discreet, tax-efficient way to access capital without selling your investments. Whether you’re considering stock loan options for business expansion, real estate acquisition, or strategic reinvestment, understanding how these lending solutions work is critical to leveraging them effectively. What Is Securities Backed Lending? Securities backed loans (SBL) is a financing solution that allows you to borrow against the value of your stock portfolio without selling any shares. Instead, your securities serve as collateral for the loan, providing a fast and flexible source of capital that doesn’t trigger capital gains or disrupt your market exposure. This lending structure is commonly used by high-net-worth individuals who want to: Access cash for large purchases or investments Consolidate high-interest debt Avoid selling long-term appreciated assets Maintain ownership of dividend-generating securities How Stock Loans Work The process of a stock loan is straightforward: You pledge liquid, eligible shares as collateral (typically blue-chip or AIM-listed stocks). A lender assesses the value, volatility, and liquidity of the portfolio. A loan-to-value (LTV) ratio is offered—typically up to 65%. You receive a cash loan in your preferred currency (GBP, USD, EUR, RMB). Interest is serviced monthly or quarterly; terms range from 36 months to 5 years. You retain beneficial ownership, but the lender holds a lien on the shares. At Platinum Global Bridging Finance, stock loans are structured as margin loans with recourse, with custody remaining with a third party and no title transfer. Benefits of Securities Backed Lending and Stock Loans Liquidity Without Liquidation: Gain fast access to capital while keeping your portfolio intact. Competitive Interest Rates: From just 3% per annum, often lower than

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Security-Backed Lending: Unleashing the Power of Securities Financing and Stock Loans

By on 9 May 2025   /   Blog  
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Security-Backed Lending: Unleashing the Power of Securities Financing and Stock Loans

Security-Backed Lending: Unleashing the Power of Securities Financing and Stock Loans In today’s wealth management landscape, investors are increasingly turning to security backed lending as a sophisticated way to unlock liquidity while keeping their portfolios intact. Known also as stock loans or securities financing, this strategy is growing in popularity among high-net-worth individuals, family offices, and global investors seeking access to capital without disrupting long-term investment strategies. If you’re holding a significant portfolio of listed securities, this powerful lending solution may provide the flexibility and funding you need—without compromise. What Is Security-Backed Lending? Securities backed loans allows you to borrow against the value of your publicly traded securities—such as stocks, ETFs, or mutual funds—without selling them. These loans are secured by your portfolio, and the lender issues funds based on the loan-to-value ratio (LTV) of the assets. Depending on your collateral’s quality, you can typically borrow up to 65% of its market value. Unlike unsecured personal or business loans, stock-backed financing offers lower rates, faster approvals, and fewer restrictions on use. Why Use a Stock Loan? For clients with substantial investment holdings, stock loans unlock value without triggering capital gains tax or sacrificing long-term appreciation potential. The benefits include: Immediate Liquidity – Fund property purchases, business deals, or large-ticket items without waiting on traditional lenders. Preserve Market Exposure – Continue earning dividends and benefiting from potential stock appreciation while borrowing. Low Interest Rates – Rates typically start from 3% p.a., far below most credit cards or unsecured loan products. No Restrictions on Use – Use proceeds for real estate, tax payments, debt consolidation, investment opportunities, or personal needs. Strategic Use Cases Security-backed lending can be a smart move in several financial scenarios. Here are some of the most common: Business Expansion: Use a portion of your portfolio to fund acquisitions,

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Understanding Securities Collateral: How It Works and Its Benefits

By on 9 May 2025   /   Blog  
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Understanding Securities Collateral: How It Works and Its Benefits

Understanding Securities Collateral: How It Works and Its Benefits Securities collateral refers to the practice of using financial securities as a form of security when obtaining a loan. It is a common practice in the financial industry and offers several benefits to borrowers. Securities based lending, often known as SBLOC or security-based lending, allows individuals to borrow against their stock portfolio or other financial securities. One of the significant advantages of securities collateral is the flexibility it offers. With securities based line of credit, borrowers have the freedom to use the funds for various purposes, such as investing in real estate, starting a business, or even covering personal expenses. This flexibility can be especially beneficial for investors who have a significant amount of wealth tied up in their stock portfolio but need access to liquidity. By utilizing securities as collateral, they can unlock the value and capitalize on their assets without needing to sell their investments. Furthermore, securities backed lending line of credit provides borrowers with favorable terms compared to traditional lending options. The interest rates on these loans tend to be lower than unsecured loans or credit cards. This is because financial institutions consider the borrowers’ securities as collateral, reducing the level of risk associated with the loan. Additionally, the borrowing capacity is often higher with securities collateral because the collateral value is based on the market value of the securities, providing borrowers with increased access to funds. Overall, understanding securities collateral and its benefits can be crucial for individuals looking to borrow against their stock portfolio or explore securities based lending options. Exploring the Basics of Borrowing Against Stocks Borrowing against stocks is an option that allows investors to access liquidity without liquidating their securities. When an investor wants to obtain a loan using their stocks as collateral,

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Advantages and Disadvantages of Securities Based Lending

By on 9 May 2025   /   Blog  
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Advantages and Disadvantages of Securities Based Lending

Advantages and Disadvantages of Securities Based Lending In a world where market timing matters and liquidity opens doors, securities-based lending has become an increasingly valuable tool for high-net-worth individuals and investors. Whether you’re looking to unlock capital without disrupting your long-term investments or seeking funding for business, real estate, or personal ventures, securities-based lending offers a flexible and tax-efficient alternative to traditional loans. Understanding Securities-Based Lending Securities backed lending (SBL) allows borrowers to use their investment portfolio—typically publicly traded stocks, bonds, or mutual funds—as collateral to secure a loan. Rather than liquidating assets and potentially triggering capital gains taxes, you can retain ownership of your investments while accessing a credit facility based on their market value. The concept is straightforward: a lender assesses the value, liquidity, and volatility of your portfolio, assigns a loan-to-value (LTV) ratio (commonly up to 65%), and provides you with a line of credit or lump-sum loan. This capital can be used for nearly any purpose—without the restrictions that often come with traditional personal or business loans. How It Works Here’s how a typical securities-based lending arrangement functions: Collateral Selection: You pledge eligible securities such as blue-chip stocks or liquid bonds. Loan Structuring: The lender evaluates the portfolio and assigns an LTV ratio based on risk. Loan Issuance: You receive a loan or revolving line of credit, often in GBP, USD, EUR, or RMB. Repayment Terms: Interest is serviced monthly or quarterly, and the principal is repaid according to the loan term (typically 36–60 months). Custody & Control: Custody often remains with a third party, and the loan is structured with or without title transfer depending on the lender. At Platinum Global Bridging Finance, we structure margin loans with recourse, allowing clients to retain economic ownership of their shares while accessing liquidity. Benefits of Securities-Based Lending

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Securities Based Lending | Secure Loans Against Your Collateral

By on 9 May 2025   /   Blog  
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Securities Based Lending | Secure Loans Against Your Collateral

Securities as collateral | Secure Loans Against Your Collateral What Is Securities-Based Lending? Securities backed lending involves borrowing against your financial portfolio — typically publicly traded stocks, ETFs, or bonds — without liquidating them. These loans are usually structured as non-purpose, meaning you can use the funds for any lawful purpose except buying additional securities. With this form of lending, you retain ownership of your portfolio, allowing it to continue appreciating and generating dividends, while the lender takes a secured interest in the assets. Why Use Securities-Based Lending? ✅ Access Fast Capital: Receive funding in days, not weeks. ✅ No Credit Checks or Income Proof: Approval is asset-based, not income-based. ✅ Non-Dilutive: Perfect for entrepreneurs who want liquidity without giving up equity. ✅ Tax Efficient: Avoid triggering capital gains tax by not selling appreciated assets. ✅ Flexible Usage: Funds can be used for property purchases, debt restructuring, estate planning, or luxury acquisitions. How Does It Work? Assess Eligibility: Review the securities you hold — ideally blue-chip, liquid, and listed on major exchanges. Loan Structuring: Agree to terms, including loan-to-value (LTV), interest rate, and repayment schedule. Collateral Pledge: Securities are transferred to the lender or custodian under a control or pledge agreement. Funds Disbursed: Loan is issued once collateral is confirmed — often within 5–10 business days. Loan-to-Value (LTV) Ratios Asset Type Typical LTV Large Cap Stocks 50–70% ETFs 50–65% Corporate Bonds 40–60% Mutual Funds 30–50% Higher LTVs are available for portfolios with strong liquidity and diversified holdings. Common Use Cases 🔹 Business working capital or expansion 🔹 Bridge financing for real estate transactions 🔹 Refinancing or consolidating high-interest loans 🔹 Tax settlement or estate planning 🔹 Luxury asset purchases (jets, yachts, fine art) What Makes Our SBL Solutions Different? At Platinum Global Bridging Finance, we work with a network of

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A Guide to Securities Based Lending Against Global Stocks

By on 5 May 2025   /   Blog  
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A Guide to Securities Based Lending Against Global Stocks

A Guide to Securities Based Lending For investors looking to access capital without disrupting their portfolio, securities backed lending (SBL) has become a flexible and efficient solution. Rather than liquidating investments, individuals can borrow against them—unlocking liquidity for personal or business use while continuing to benefit from market performance. Whether you’re a seasoned investor or exploring alternative finance options for the first time, this guide will help you understand how securities-based lending works, who it’s for, and how to get started. What Is Securities-Based Lending? Securities based lending allows you to borrow money by using your existing investment portfolio as collateral. Instead of selling your shares to raise cash, you pledge them to a lender who provides a loan based on the current value of your holdings. It’s a private, non-purpose loan—meaning the funds can typically be used for any legal reason, including real estate purchases, business expansion, tax obligations, or strategic investments. How It Works Portfolio AssessmentYour portfolio is reviewed for eligible securities—typically liquid, listed blue-chip stocks or mutual funds. Loan-to-Value (LTV) CalculationBased on the liquidity and risk profile of your holdings, the lender offers a loan up to a certain percentage—usually between 60% and 70% of the portfolio’s value. Loan Terms & StructureLoan terms generally range from 36 to 60 months, with interest rates from 3% p.a.. Loans are usually structured as margin loans with recourse. DisbursementOnce agreements are signed and custody is confirmed (often with a third-party custodian), funds are released—typically within 3 to 7 business days. Who Is It For? Securities-based lending is designed for: High-net-worth individuals with portfolios over £250,000 Entrepreneurs and business owners needing working capital Investors looking to access liquidity without incurring capital gains tax Property buyers who want to act quickly without mortgage delays Expats or globally mobile clients with international portfolios

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