Securities Lending
Lending against company shares can be possible and attractive. Securities lending can be faster than real estate lending and offer more flexibility, often at a lower cost.
Lending facilities can be created against a diversified portfolio, known as a lombard loan or a single listed company.
What is securities lending?
Securities lending is a loan or lending facility which is secured against a share portfolio or shares in a company. The lender takes custody or security over the shares and offers a lending facility against the security. These loans can be arranged quickly and offer a high degree of flexibility.
Many private banks offer loans securitized against share portfolios. These are referred to as lombard loans. They can offer great flexibility and attractive rates of interest.
Not many lenders specialise in loans securitized against a single company. The lenders that do offer this service have created a strong proposition on attractive lending terms.
Our Guide to Securities Backed Lending
Guide to Securities Backed Lending
Securities-backed lending provides ready access to capital. From Property Development Finance and Bridging Finance to standard mortgages, you can use securities-backed lending (also known as Lombard loans) for various purposes.
Securities-backed lending can be an exceptionally useful tool for creating liquidity quickly. As well as more “traditional” Lombard loans against a diverse portfolio of liquid, listed securities, Advias can also broker more unusual deals. This includes sourcing and negotiating loans against unlisted stocks, single stocks and pre-IPO loans.
Lenders in this space provide funding while using the securities available to a borrower. These loans are typically used to access liquidity quickly, allowing investors to take advantage of time-sensitive opportunities.
Building up a representative portfolio to gain access to this lending space change can be challenging. Advias has a proven track record of acting in clients’ best interests and negotiating the best outcome.
More on Securities Lending
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