Securities-Backed Lending

In theory, you can use any financial asset as collateral for securities-backed lending. However, the more liquid and mainstream your financial assets are, the more options and lenders will be available to you.

Enness can help you secure assets-backed lending using the following securities as collateral:

• Portfolios

• Stocks

• Bonds

Securities-backed lending is particularly advantageous because it's possible to receive your credit line relatively quickly. Comparatively, the underwriting process on something like a mortgage can take a while (because the lender needs to value the property). However, the underwriting process for securities-backed lending is much more straightforward because underwriting is usually limited to the collateral used as security for the loan. It's this very efficient underwriting process that makes receiving capital so quick. In some cases, you might have access to your credit line in as little as 24 hours or a matter of a few days.

That said, knowing which lenders to approach, how to present your situation and how to settle an advantageous deal is critical. With access to the right lenders and a track record of negotiating the best securities-backed lending terms and deals against different types of security, Enness is ideally positioned to help you get the best loan.

Enness will start by discussing your needs, situation and helping you decide if securities-backed lending is the right option for you. If it is, your broker will then approach lenders to negotiate a securities-backed loan and terms on your behalf. The lenders that Enness approaches on your behalf will depend on the securities you hold, how much you want to borrow and the other details of your situation. When it comes to the application process itself, Enness will work alongside you to ensure everything moves quickly and smoothly.

You'll start by identifying the trading symbol of the securities you want to use as collateral for securities-backed lending. You will also specify the number of securities you wish to pledge to the lender if you are only using part of your assets as collateral or if you are pledging various equities.

Additionally, you will also provide your ID, banking and brokerage details. The lender will use this information to make sure you meet all the AML, KYC, reporting and other regulatory obligations that apply. The underwriting process then commences, and the lender evaluates your securities. Each securities-backed lending provider will have its own set of trading and liquidity standards that you will need to meet. These are entirely at the discretion of the institution and will vary from lender to lender. The lender will also check that your stocks are in proper custodial format.

When securities-backed lending is approved, you will need to electronically transfer your securities into the lender's designated custodian account. The lender will verify receipt of the securities and then fund your transaction per the terms of your loan agreement.

For securities-backed lending and repo transactions, you can recover possession of the securities at the loan or transaction maturity date. Either you will need to repay the principal balance of the loan, or you can repurchase the securities at an agreed-upon discounted rate.

Because the application process for securities-backed lending is relatively straightforward and quick, it can be faster to apply and receive securities-backed lending than to obtain a green light on a mortgage. It’s for this reason that securities-backed lending is often associated with property financing. Securities-backed lending can be particularly useful if you want to buy an investment property or second home very quickly and you wish to bypass the mortgage application process for any number of reasons. Securities-backed lending can also be used to your advantage if you are competing to buy a property against cash buyers.

LDN Finance offers tailored financing solutions for high-net-worth individuals, emphasising the benefits of retaining investment growth potential and avoiding capital gains tax. This makes it a strategic alternative to traditional mortgage options.

While securities-backed lending is often employed in property financing, it is also used in other situations. Borrowers might choose to use securities-backed lending to reinvest in the stock market, to diversify a portfolio of single stocks or simply as a much-needed cash injection to cover an emergency or opportunity. Entrepreneurs or business owners often use securities-backed lending to leverage opportunities or start a business-related scheme, project or plan.

In scenarios where the proceeds of securities-backed lending is used to reinvest or diversify a portfolio, there is always an inherent risk. Asset prices and investments can fluctuate or lose value. You will need to make sure you can continue to make repayments on your loan should this happen or if your lender enforces a margin call. Ultimately, what you use securities-backed lending for will depend on your needs, expertise, broader financial situation and appetite for risk.

Every lender has its own eligibility standards for securities-backed lending. Some lenders are also more flexible than others. As a general rule, however, you will need to have an investment portfolio of at least £100,000 before a lender will consider you for this type of financing. Some institutions may require that your portfolio is more significant than this. Lenders will also have other criteria you - or your securities - will need to meet before you are eligible for securities-backed lending from their institution.

Enness works with clients - and lenders - from around the world, and many offer securities-backed lending in a variety of different currencies for your ease and convenience. Lenders are used to working with international borrowers who have multiple business interests, investments, and income streams, and as a result, securities-backed lending is a truly global solution. Most lenders are open to working with borrowers of any nationality.

Securities-backed lending varies in duration, but it is generally regarded as a short-term borrowing solution. In some cases, you might need securities-backed lending for a very short period - just a few days or weeks isn't at all unusual.

At the longest, securities-backed lending typically runs for around 24 months. There's no maximum timespan, and your loan could run for a little bit longer than this - there isn't a cut-off or cap you need to keep in mind. However, if you need a longer-term financing solution, Enness' brokers will be able to advise you if securities-backed financing is your best choice. If you decide that securities-backed lending isn't the right option for you, Enness will present you with alternative solutions, possibilities, and lenders to meet your financing needs. 

Very generally, most institutions will offer securities-backed lending at around 50% of the value of your securities (i.e., a £5 million loan collateralised against securities with a marketable value of £10 million). In some cases, you will be able to get a little more, but this will depend on your situation and securities and will very much be at the lender's discretion. Securities-backed lending can provide a loan-to-value (LTV) ratio of up to 80% depending on the type of securities used.

There are various types of loans available to private clients, including securities backed loans, which use mutual funds, exchange-traded funds, and other marketable securities as collateral. These loans can be used for a range of purposes, such as financing a property purchase or accessing additional assets. Securities pledged as collateral can include stocks, bonds, and investment funds, and the loan amount is typically determined by the market value of the securities. Lenders may also consider the borrower’s financial profile and anticipated risk when determining the loan amount. It’s essential to exercise caution when borrowing against securities, as market fluctuations can impact the value of the collateral.

Yes, it is possible to use a single stock as collateral for securities-backed lending, depending on the type of stock and its liquidity, volatility, and market capitalisation.

At Enness Global, we work with private banks, family offices, and boutique lenders that can offer tailored credit facilities against single-stock positions - particularly if the stock is from a well-capitalised, publicly listed company.

However, single-stock loans require careful structuring to mitigate risk and protect both you and the lender. Our team will assess your position and negotiate terms that align with your objectives, including loan-to-value ratios, margin calls, and repayment flexibility.

Yes, lending against pre-IPO shares is possible, although it is more complex than borrowing against publicly traded securities.

At Enness Global, we have access to a niche network of lenders that specialise in structuring loans backed by private or illiquid equity, including pre-IPO shares and holdings in venture-backed companies.

These facilities typically depend on factors such as the stage of the business, anticipated IPO timeline, shareholder agreements, and any transfer restrictions.

We work discreetly and efficiently to negotiate terms that unlock liquidity while safeguarding the value of your equity position.

In many cases, yes. With certain structured securities-backed lending, you can retain both legal ownership and voting rights of your shares throughout the term of the loan. This is particularly important for founders, executives, and major shareholders who wish to maintain control, dividend income, and strategic influence over their holdings.

At Enness Global, we structure non-transfer-of-title (NTOT) arrangements wherever possible. These ensure your shares remain in your name, even while they serve as collateral, providing liquidity without sacrificing governance or long-term interests.

A Lombard loan, also called a securities-backed loan or portfolio loan, is a credit facility arranged by Enness and secured against an investment portfolio of equities, bonds, or funds. It allows borrowers to access liquidity without liquidating their investments, preserving long-term investment returns while releasing capital for immediate use. Private banks offer Lombard lending as a core product for HNW and UHNW clients, and Enness negotiates the terms and structure on the client's behalf. 

Enness can typically secure Lombard loans at 50–70% LTV against blue-chip equities and government bonds. Less liquid assets concentrated single-stock positions, or alternative investments attract lower advance rates. The exact amount depends on the composition of the portfolio and the lender's risk appetite. Enness reviews the portfolio before approaching lenders to maximise the available borrowing and ensure the structure is appropriate. 

Yes. Enness works with specialist lenders who consider unlisted company shares as security for a loan. Lenders assess the company's valuation, sector, revenue trajectory, and the borrower's ability to service the debt independently of the collateral. This market is more limited than listed securities lending but Enness has the relationships to access it, particularly for well-capitalised private companies approaching a liquidity event. 

A pre-IPO loan allows shareholders in a company approaching a public listing to borrow against the value of their shares before the IPO completes. Enness arranges pre-IPO loans for founders, executives, and early investors who want liquidity ahead of a listing without selling shares. The loan is typically repaid from IPO proceeds. Lenders assess the company's valuation, likelihood of listing, timing, and the borrower's lock-up period. 

If the value of the collateral falls significantly, the lender may issue a margin call, a requirement to either repay part of the loan or provide additional collateral to restore the required LTV ratio. Enness structures Lombard facilities conservatively and ensures clients understand the buffer between the current portfolio value and the margin call trigger before committing. Clients can also pre-agree top-up mechanisms to manage this risk. 

Stock loans and portfolio lending are forms of securities-backed lending where funds are raised against listed equities or diversified investment portfolios.

These facilities provide fast access to capital, with loan amounts typically determined by the liquidity and diversification of the underlying assets. More diversified portfolios generally support higher leverage and more competitive pricing.

For borrowers, this creates a flexible way to access capital without disrupting long-term investment positions or triggering potential tax liabilities.

Securities-backed mortgages combine property finance with portfolio-based lending, allowing borrowers to use investment assets alongside or instead of traditional income to support borrowing. This approach is particularly relevant for high-net-worth individuals with significant investment holdings, enabling larger loan sizes or more flexible structures than conventional mortgage underwriting would allow.