Listed companies and shareholders often face liquidity challenges despite holding valuable assets. At Liquidity Solutions, we offer lending solutions that allow you to unlock the value of your shares without having to sell them, giving you access to liquidity while maintaining your ownership position.
Lending against shares, also known as securities-backed lending, allows shareholders to use their stock as collateral for a loan. This form of financing provides immediate liquidity without the need to sell your shares, ensuring you retain voting rights, future dividends, and any potential upside in the stock’s value.
Borrow up to 80% of the market value of your shares.
The loan is secured solely by your shares, with no personal or corporate guarantees required.
Enjoy interest rates between 4% and 9% per annum.
Loan durations extend up to 120 months, providing the flexibility needed for long-term planning.
Keep full control of your shares and benefit from potential future gains.
Avoid market volatility or price drops that often accompany share sales.
Up to 80% Loan-to-Value (LTV): Access funds quickly without the need to liquidate your holdings.
With over 25 years of experience in financial structuring, Liquidity Solutions provides tailored lending solutions that meet the needs of shareholders and listed companies alike. Our focus is on helping you unlock liquidity through monetization while preserving the value of your assets.
Talk to our team to learn how lending against shares can provide the liquidity you need to fund new ventures or meet immediate financial obligations.
Lending against shares allows shareholders to use their equity as collateral to secure financing without having to sell their holdings. This approach provides liquidity for investors while maintaining their ownership stake in the company. Understanding your asset liquidity and shares liquidity levels is crucial for maximizing the benefits of this strategy. Loans against shares can be used for a variety of purposes, from expanding business operations to managing personal financial needs.
Key Concepts:
Share-based lending typically involves pledging shares of publicly traded companies as security for a loan. The lender assesses the value of the shares and grants a loan based on a percentage of their market value. These loans can have lower interest rates compared to unsecured loans, as the shares provide tangible security. Once the loan is repaid, the shares are fully restored to the borrower.
Key Concepts:
One of the main advantages of lending against shares is the ability to unlock capital without selling off valuable assets. Shareholders retain their voting rights and potential capital gains while accessing necessary funds. This form of leveraging allows businesses and individuals to cover immediate financial needs or invest in new opportunities without disrupting their long-term investment strategies.
Key Concepts:
While lending against shares offers attractive liquidity solutions, there are risks involved. If the value of the pledged shares declines, the lender may issue a margin call, requiring the borrower to provide additional collateral or repay part of the loan. Failure to do so could result in forced liquidation of the shares. Understanding the market volatility and the lender’s terms is crucial for minimizing risks.
Key Concepts:
For companies looking to raise capital for expansion or operations, lending against shares can provide an efficient way to secure financing without diluting ownership. By using shares as collateral, companies can unlock significant funds to drive growth, pursue mergers and acquisitions, or meet immediate financial obligations. This method is particularly appealing for firms that want to maintain shareholder value and avoid issuing new equity.
Key Concepts:
Lending against shares is subject to regulatory oversight to ensure transparency and protect both borrowers and lenders. Compliance with securities laws and disclosure requirements is essential, especially for large transactions involving significant shareholding stakes. Investors should also be aware of anti-money laundering (AML) and know-your-customer (KYC) regulations, which are strictly enforced in share-backed lending agreements.
Key Concepts:
With increased market uncertainty, more investors are turning to lending against shares as a strategy to maintain liquidity while holding onto their equity positions. The rise of institutional investors and family offices using this approach reflects its growing acceptance as a sophisticated capital management tool. Additionally, advancements in technology and digital platforms are streamlining the lending process, making it easier for both borrowers and lenders to transact.
Key Concepts:
Leveraging shares to secure financing provides a unique opportunity to optimize your financial strategy. By using equity efficiently, investors can unlock liquidity for key investments, debt consolidation, or expansion projects, all while preserving their ownership stakes. Structuring the loan to align with long-term financial goals is crucial to maximizing its value. With the right approach, a share-backed loan can enhance growth potential without compromising your existing portfolio.
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