What lenders typically require
Eligible securities — exchange-listed equities, ADRs, or funds that meet liquidity and volatility screens. Restricted, unlisted, or thinly traded names may fail or require legal work.
Custody — ability to pledge or control accounts via agreement with an acceptable custodian.
Credit & compliance — KYC/AML, sanctions screening, and sometimes personal or entity financial disclosure even when collateral is primary.
Concentration & LTV — large single-stock positions face lower advance caps or additional covenants.
How it works
You submit statements and entity documents. Compliance clears. Credit and collateral teams run parallel review. You receive an indicative or firm term sheet. Legal closes the security interest. Funding follows. Requirements tighten or loosen based on what appears in diligence—undisclosed liens or corporate restrictions are common deal-killers if found late.
Key benefits
- Clear expectations — documented list of conditions precedent before you spend on counsel.
- Global standards — experienced desks know cross-border pledge mechanics.
- Alignment with solutions — map your profile via solutions before you apply.
Risks or considerations
Missing a restriction on your shares can void a closing timeline. Overstating liquidity or share count erodes trust and may end the process. This is not an application form—speak with a representative for your case.
When this strategy makes sense
- Public company executives with blackout or 10b5-1 constraints—disclose all compliance rules early.
- Family offices with multi-custodian portfolios—consolidate reporting where possible.
- International founders listing on major exchanges—confirm transfer agency rules.