What are the requirements for a stock loan?

Collateral — listed, liquid, transferable securities in approved tiers. Custody — ability to perfect a security interest via pledge or control agreements. Identity & compliance — KYC, AML, sanctions, and sometimes source-of-wealth documentation. Legal capacity — entities need charters, resolutions, and authorized signers; trusts need trustee authority. Transparency — disclose existing liens, margin balances, and corporate restrictions early. Full narrative: requirements guide.

You submit statements and entity documents. Teams run parallel diligence. You receive terms subject to CPs. Counsel closes pledge/control paperwork. Custodian acknowledges. Funds release when boxes are checked. The how it works page on our stock loans hub tracks the same lifecycle at a glance.

Clean files close faster and preserve negotiating leverage. Missing a restriction until the eleventh hour wastes fees and erodes trust. Understanding requirements also helps you compare apples-to-apples across different lending structures.

Penny stocks, prolonged halts, opaque OTC names, restricted stock without a workable legal path, and accounts that cannot pledge per custody agreements. Retirement accounts are typically not substitutes for taxable pledges. Concentration can reduce advances even when names are “eligible.”

Business borrowers — expect entity docs and possibly financials; start at business owners. Executives — compliance with insider policies; executives & RSUs. International wealth — multi-custodian pledges; still within our global footprint when feasible.

Prepare statements and restriction disclosures, then get started. For collateral menus, also read what types of stocks qualify.