How does a stock loan work?

You grant the lender a security interest in specified positions. The lender extends credit based on a risk-adjusted collateral value (haircuts for volatility, liquidity, and concentration). You receive proceeds after closing conditions; from that moment, the loan exists as a contractual obligation separate from your market view of the stock. This is distinct from selling: you have not necessarily disposed of the asset for tax purposes, but you have encumbered it—tax questions belong with your advisor; we do not provide tax advice.

For a parallel long-form reference, see how does a stock loan work (guide).

1. Intake — goals, amount, currency, timeline, custody location, restrictions.
2. Collateral screening — exchange, ADV, eligibility tiers, concentration tests.
3. Terms — rate, maturity, LTV, remedies, events of default.
4. Closing — agreements and custodian acknowledgments.
5. Funding — wire after CPs.
6. Ongoing — marks, reporting, maintenance until payoff. Our stock loans: how it works page is the service-level summary.

Parallel work (compliance + collateral) beats serial email chains—respond quickly to document requests.

Time and optionality — access liquidity while deferring a sale decision when that fits your plan. Documented relationship — rights and remedies are in writing, not implied. Fit for global portfolios — international listings can be in scope when custody works. Compare against other financing options on stock loans to see where this product class wins or loses.

Collateral can lose value faster than real estate. Floating rates can rise. Covenants can bite in stress. Enforcement may liquidate pledged shares. If you stack multiple facilities on overlapping collateral, cross-default risk appears. Read risks before you optimize only for rate.

Founders and executives managing concentration—pair with executives & RSUs. Owners funding operations—see business owners. Real estate timing — some borrowers bridge deposits; see real estate investors. The right use case always includes a credible repayment or refinance path.

Gather statements and share your timeline through get started. If you want vocabulary first, read stock loans and how much you can borrow before you ask for a term sheet.