What does “without selling” mean?
It means you borrow against positions rather than liquidate them into cash in a trade. Economically you may remain long the pledged sleeve; legally those shares are encumbered and transfers may be restricted. Dividend and voting treatment follows your agreement—not generic assumptions. For tax character of borrowing versus selling, involve a professional; see educational cash without selling (guide) and we reiterate: not tax advice.
How it works at a high level
You pledge eligible collateral; the lender extends credit against a borrowing base; you draw funds; you service interest; you repay or refinance; collateral is released when obligations are satisfied. Structures include term loans, bespoke facilities, margin at brokers, and SBLOC-style revolvers—each with different rules. Map options on stock loans and compare products on stock loans.
Key benefits people pursue
Timing — address a near-term cash need while deferring a sale decision. Potential to stay invested — maintain exposure if that matches your plan (not a guarantee of outcomes). Documented flexibility — revolving lines can refill as you repay. Contrast with selling using how it works and read best way to access cash (guide).
Risks and considerations
Interest compounds; floating rates can rise; maintenance calls can arrive in drawdowns; default can cost pledged shares. Purpose restrictions may apply. Cross-border borrowers face additional compliance steps. Review risks before you treat borrowing as “easy money.”
Use cases
Owners funding payroll or inventory—business owners. Real estate timing — deposits or bridge needs via real estate investors. Lifestyle or education spend where borrowers accept carrying cost versus recognition on a sale—discuss taxes with a CPA. For urgent timelines, also read emergency cash.
Next steps
Outline amount and timeline; pull statements; then use get started for a structured review.