Securities Backed Loans Line Of Credit Financing | Liquidity Without Liquidation

By on 8 May 2025   /   Blog  
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Securities Backed Loans Line Of Credit Financing | Liquidity Without Liquidation

Securities Backed Loans & Line of Credit Financing: Liquidity Without Liquidation Securities backed loans (SBLs) and lines of credit backed by stock portfolios are becoming increasingly attractive to high-net-worth individuals and business owners. These financing solutions allow borrowers to unlock the value of their publicly traded securities without selling them, offering fast liquidity while maintaining market exposure. At Platinum Global Bridging Finance, we help clients leverage their investment portfolios to secure flexible funding for both personal and business purposes. Whether you’re seeking working capital, looking to consolidate high-interest debt, or funding a large purchase or opportunity, securities-backed credit lines can provide a tailored, non-dilutive solution. What Are Securities Backed Loans? Securities backed financing are non-purpose loans where you pledge your eligible securities — typically blue-chip stocks or ETFs — as collateral in exchange for a loan. Unlike traditional margin loans, these are structured as non-recourse or limited recourse agreements, reducing the risk to your broader personal assets. Borrowers continue to own their securities and receive any dividends or capital gains during the loan term. However, the lender holds the securities as collateral and may impose restrictions or call the loan if the value of the portfolio drops significantly. Line of Credit vs. Lump Sum Stock Loan There are two primary options in securities-backed financing: Lump-Sum Loan A fixed loan amount secured by pledged securities. Repayment terms and interest rates are pre-defined. Ideal for one-off needs like real estate deposits or tax payments. Line of Credit Functions similarly to a revolving credit facility. You borrow only what you need, when you need it. Interest is charged only on the drawn balance. Excellent for managing ongoing cash flow needs or opportunistic investing. Key Benefits of Securities Backed Credit Lines Liquidity Without Sale: Retain ownership and avoid capital gains tax by not selling

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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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Securities Financing: Unleashing the Global Potential of Stock Loans and Securities-Based Borrowing

By on 5 May 2025   /   Blog  
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Securities Financing: Unleashing the Global Potential of Stock Loans and Securities-Based Borrowing

Securities Financing: Unleashing the Global Potential of Stock Loans and Securities Based Borrowing As global wealth continues to grow and markets become more interconnected, securities financing has emerged as a powerful strategy for unlocking capital tied up in investment portfolios. Whether you’re based in London, Dubai, Hong Kong, or New York, stock loans and securities-based borrowing offer high-net-worth individuals and corporations the ability to convert paper wealth into flexible, liquid funding—without selling a single share. In this article, we explore how securities financing works, why it’s gaining traction globally, and how you can strategically deploy it to fund acquisitions, investments, and growth initiatives across borders. What Is Securities Financing? Securities financing—commonly referred to as stock lending or securities backed lending—involves using your investment securities as collateral for a loan. These facilities are typically structured as margin loans or credit lines, secured by listed shares, ETFs, bonds, or mutual funds. Instead of liquidating your holdings, you pledge them to a lender in exchange for a loan, usually valued at 60% to 70% of the portfolio depending on liquidity and volatility. You retain economic ownership and market exposure, while gaining fast access to funding in GBP, USD, EUR, RMB, or other currencies. Why Global Investors Are Turning to Stock Loans 1. Liquidity Without Liquidation Global investors with long-term strategies often hesitate to sell appreciated assets due to tax implications or missed growth potential. Securities-based borrowing provides liquidity without triggering taxable events. 2. Multi-Currency Flexibility At Platinum Global Bridging Finance, we fund in GBP, USD, EUR, and RMB, enabling cross-border investments, international real estate transactions, and global business expansion—seamlessly. 3. Quick Turnaround While traditional cross-border lending can take weeks or months, stock-backed loans can fund in as little as 3 to 7 business days, allowing you to seize time-sensitive opportunities globally. 4. Fewer

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