Unlisted Stock Loans

Unlisted stocks are shares in companies that do not trade on public stock exchanges such as the LSE or NASDAQ. They often belong to private businesses, startups, or pre-IPO companies that opt to remain private for regulatory, strategic, or cost reasons.

While mainstream lenders may hesitate to lend against unlisted shares, specialist providers offer solutions to unlock the value of these assets.

Using private company shares as collateral requires careful planning, both legally and financially. Sale or transfer restrictions, shareholder agreements, and other contractual obligations must be reviewed. Working with an experienced broker like Enness ensures these issues are managed efficiently and securely.

Sole shareholders may experience a faster process, whereas borrowers with multiple shareholders will need to coordinate approvals.

Yes, provided the startup demonstrates profitability or strong growth potential. Lenders consider revenue, investor backing, and market position. Early-stage ventures without revenue typically do not qualify, but later-stage startups with proven performance are often eligible.

Loan-to-value ratios for unlisted stock loans are generally lower than those for listed shares, typically ranging from 20% to 40%. Strong company performance, diversified assets, and a robust shareholder track record may result in higher LTVs at the lender’s discretion.

Borrowers use equity in private companies to raise capital without selling shares or diluting ownership. Typical applications include reinvesting in the company, acquiring assets, diversifying concentrated wealth, or unlocking liquidity ahead of an IPO.

Restricted stock, including RSUs, may be considered as collateral if the company is financially robust and the equity terms allow it. Eligibility depends on vesting schedules, transfer restrictions, and company performance. Specialist lenders may structure these loans for qualifying clients.

Related solutions: Lombard Loans and Single Stock Loans