When Should You Use Securities-Based Lending?
Six strategic scenarios when SBL makes sense - liquidity without selling, bridge financing, concentrated equity, and when to avoid it.
Read moreSecurities-Based Lending: Unlock Liquidity Without Selling Your Portfolio
Borrow against eligible investment assets to access $10,000 to $10,000,000+ in capital. No sale required. Maintain your positions, preserve upside, and use funds for business capital, acquisitions, tax events, or bridge needs. One application, we match you with the right SBL program. Apply today.
- Liquidity without selling investments
- $10K-$10M+ available
- Faster than many commercial loans
- Business capital, acquisitions, tax needs
Securities-Based Lending at a Glance
$10M+
Max amount
50-75%
Typical LTV
Portfolio
Collateral
Revolving
Or term
No sale
Keep positions
What Is Securities-Based Lending? Access Capital While Keeping Your Investments
Securities-based lending (SBL) lets you borrow against eligible investment assets - stocks, bonds, mutual funds, ETFs - as collateral. Instead of selling appreciated positions and triggering capital gains, disrupting your long-term strategy, or timing the market poorly, you pledge your portfolio and receive a line of credit or term facility. You keep your investments intact, maintain market exposure, and access liquidity when you need it.
SBL is commonly used by business owners, executives, and high-net-worth individuals who hold sizable portfolios and need capital for working capital, acquisitions, bridge financing, tax obligations, or strategic opportunities. Because the collateral is liquid and marketable, lenders can often approve and fund faster than with traditional commercial loans that rely on business cash flow or real estate appraisals.
Axiant Partners connects qualified borrowers with SBL lenders nationwide. One application goes to multiple programs. We help you understand advance rates, margin requirements, and risk considerations so you can decide if SBL fits your situation. Apply now to see what you qualify for.
Common Use Cases for Securities-Based Lending
SBL fits specific liquidity needs. Here are the most common ways borrowers use portfolio-backed financing:
Business Working Capital
Fund payroll, inventory, receivables gaps, or seasonal needs without liquidating investments. SBL provides revolving or term capital tied to portfolio value. Business owners use SBL when bank lines are maxed or when they prefer not to tap traditional credit.
Acquisition Deposits
Earnest money, down payments, or short-duration bridge capital for business or real estate acquisitions. SBL can fund faster than SBA or conventional loans. Often used alongside commercial bridge loans or SBA financing.
Tax-Related Liquidity
Cover estimated taxes, extension payments, or other tax obligations without selling investments. Avoid triggering capital gains or locking in losses. SBL provides short-to-medium term liquidity while your portfolio continues to compound.
Bridge Financing
Short-term capital to bridge the gap between selling one asset and acquiring another. Real estate transitions, business sales, or investment timing. SBL offers flexibility when you need liquidity quickly and expect to repay from a future event.
Concentrated Equity
Access liquidity from a concentrated stock position without selling. Diversify over time while meeting near-term capital needs. Lenders apply concentration haircuts; we match you with programs that accommodate your situation.
Strategic Capital
Fund opportunities without selling at unfavorable times. Investment commitments, private placements, or time-sensitive transactions. SBL lets you act when the opportunity arises while keeping long-term positions intact.
How Much Can You Borrow? Typical Amounts and Advance Rates
Borrowing capacity depends on portfolio composition, diversification, and lender policy. Here's what to expect:
- Amount range - Facilities commonly run from $10,000 to $10,000,000+. Larger portfolios support larger facilities.
- Advance rates - Typically 50% to 75% of eligible collateral. Blue-chip stocks and diversified funds often receive higher rates; concentrated positions may see haircuts.
- Eligible assets - Stocks, bonds, mutual funds, ETFs. Some lenders accept certain alternatives. Ineligible or restricted securities do not count.
- Revolving vs term - Revolving lines let you draw, repay, and redraw. Term facilities provide a lump sum with fixed repayment. Both structures available.
- Rates and fees - Variable by lender and profile. Competitive for strong collateral. We present options so you can compare.
Your actual amount depends on your holdings. Apply to get a personalized assessment and see what programs fit your portfolio.
Why Borrowers Choose Securities-Based Lending
Portfolio-backed financing offers distinct advantages when used appropriately:
Preserve Portfolio
Keep your investments intact. No sale means no capital gains, no timing risk, and continued participation in market upside. Your long-term strategy stays on track.
Faster Than Traditional Loans
Portfolio-backed facilities often approve and fund quicker than SBA, conventional commercial loans, or real estate-secured lending. Liquid collateral simplifies underwriting.
Competitive Pricing
Strong collateral profiles can secure attractive rates. Lenders price based on portfolio quality, concentration, and borrower profile. We help you access competitive programs.
No Sale Required
Access liquidity without selling. Avoid lock-in losses, tax events, or disrupting rebalancing. Ideal when selling would be costly or strategically undesirable.
SBL vs Other Financing Options
Understanding how SBL compares helps you choose the right tool. Here's a quick comparison:
Securities-Based Lending vs Business Term Loan
SBL uses your investment portfolio as collateral; term loans use business assets and cash flow. SBL often funds faster and lets you keep portfolio exposure. Term loans may offer longer terms and do not tie availability to market values. Use SBL when you have significant investable assets and want to avoid selling. Use term loans when you prefer cash-flow-based underwriting. Compare business term loans for your situation.
Securities-Based Lending vs Business Line of Credit
Both can provide revolving access. SBL availability fluctuates with portfolio value; business lines of credit depend on receivables, revenue, or other business metrics. SBL does not require business collateral. Business lines suit operating needs; SBL suits investors and business owners with substantial portfolios. See business line of credit options.
What Lenders Evaluate
To qualify and structure your facility, lenders assess:
- Portfolio composition - Asset types, sectors, and quality. Diversified portfolios typically receive better terms than concentrated positions.
- Concentration risk - Single-name or sector concentration may reduce advance rates or require haircuts.
- Liquidity - Marketability of pledged securities. Listed equities and funds are typically preferred.
- Borrower profile - Credit, repayment capacity, and use of funds. Strong profiles unlock better structures.
- Facility purpose - Business capital, acquisitions, tax needs. Lenders want to understand how you will use the proceeds.
We guide you through documentation and help match your profile to suitable programs. Apply now to start.
What You'll Need to Apply
Securities-based lending applications are streamlined for qualified borrowers. Be ready to provide:
- Portfolio statement - Current brokerage or custodian statement showing holdings, values, and account details. Lenders use this to calculate advance rates.
- Account ownership - Confirmation that pledged accounts are in your name or an eligible entity. Joint or trust accounts may have different treatment.
- Identification and credit - Basic KYC and credit review. Strong credit can improve terms; some programs accommodate varied profiles.
- Use of funds - Purpose of the facility. Business capital, acquisition, tax obligation, or other. Lenders want to understand your plan.
No lengthy business plans or real estate appraisals. Portfolio quality drives the decision. Start your application to see what you qualify for.
How the Securities-Based Lending Process Works
Axiant Partners connects you with SBL lenders and guides you from application to funding.
01
Apply & Share Portfolio Details
Tell us about your investment holdings, desired amount, and use of funds. One application goes to multiple SBL lender partners. We screen for fit.
02
Portfolio Review
Lenders evaluate composition, concentration, and eligibility. Advance rates are calculated. You may receive conditional approval or requests for additional information.
03
Review Your Options
We present offers from matched lenders. Compare facility size, rate, structure (revolving vs term), and terms. Select the option that best fits your needs.
04
Fund & Draw
Complete documentation and move accounts if required. Funds are made available. For revolving facilities, draw as needed. Term facilities fund in a lump sum.
Portfolio-backed facilities often fund faster than traditional commercial loans.
Securities-Based Lending for Wealth Management Clients
High-net-worth individuals and families often hold substantial investment portfolios. When liquidity needs arise - a major purchase, business opportunity, tax event, or estate planning - selling can trigger taxes, disrupt asset allocation, or create timing risk. Securities-based lending provides an alternative: borrow against the portfolio, keep positions intact, and access capital without liquidation.
Wealth managers and advisors frequently recommend SBL for clients who need flexibility. Facilities from $100,000 to $10,000,000+ are common. Revolving structures allow draws and repayments as circumstances change. Apply to explore SBL options.
Securities-Based Lending for Business Owners & Executives
Business owners and C-suite executives often hold concentrated equity - company stock, options, or significant positions from prior roles. Selling can mean taxes, signaling, or locking in at a bad time. SBL lets you monetize without selling. Use proceeds for business capital, acquisition deposits, personal liquidity, or bridge needs.
Concentrated positions receive different advance rates than diversified portfolios. We work with lenders who understand executive compensation and concentrated equity. Apply now to see what structures are available for your situation.
States We Serve
Securities-based lending is available nationwide. We work with borrowers in all 50 states. Portfolio-backed facilities are not limited by geography - your custodian or broker location matters more than your physical address. Texas, Florida, California, New York, and every state. One application, we match you with programs that serve your situation.
Explore related financing: Commercial Bridge Loans (short-term property) � Business Term Loans (lump-sum) � All services
Risks & Considerations
Securities-based lending has tradeoffs. Understand them before you apply:
- Market volatility - Portfolio value fluctuates. Declines can reduce borrowing capacity and trigger margin calls. Be prepared to add collateral or pay down if required.
- Margin calls - Lenders monitor collateral. If value falls below thresholds, you may need to pledge additional assets or repay. Plan for volatility.
- Concentration limits - Single-name or sector concentration may reduce advance rates. Diversified portfolios typically qualify for better terms.
- Eligibility - Not all securities qualify. Restricted stock, certain alternatives, or illiquid holdings may be excluded. We help you understand what counts.
Proper use case selection matters. We help you determine if SBL fits your situation and walk you through risks. See risks of securities-based lending for more detail.
When Securities-Based Lending Makes Sense
- You hold a sizable eligible portfolio and need liquidity
- You want to avoid selling investments at unfavorable timing
- You need short-to-medium term capital with flexibility
- You can manage collateral requirements under market volatility
- You have a clear use of funds - business capital, acquisition, tax event, or bridge
For a detailed breakdown of strategic use cases, see when you should use securities-based lending. Ready to explore? Apply now.
Securities-Based Lending FAQs
What is securities-based lending?
Securities-based lending (SBL) lets you borrow against eligible investment assets - stocks, bonds, mutual funds, ETFs - as collateral. You unlock liquidity without selling, maintain portfolio exposure, and repay over time. Common for business capital, acquisitions, tax events, and bridge needs.
How much can I borrow?
Typical amounts range from $10,000 to $10,000,000+ based on portfolio value, asset mix, and lender policy. Advance rates often run 50-75% of eligible collateral. Diversified portfolios typically support higher amounts. Apply to see what you qualify for.
How fast can I get funded?
SBL often funds faster than traditional commercial loans. Portfolio review and approval can complete in days to a few weeks depending on lender and complexity. Revolving structures allow draws as needed once approved. No lengthy appraisals or business plan reviews.
What are the risks?
Market volatility affects borrowing capacity; margin calls may require additional collateral or paydown. Concentration limits can reduce advance rates. Not all securities are eligible. We help you understand risks before you apply. See risks of securities-based lending.
Do I need to sell my investments?
No. SBL uses your portfolio as collateral. You keep your positions, maintain exposure, and access liquidity. Ideal when selling would trigger taxes, lock in losses, or disrupt long-term strategy. Apply now to explore options.
Relevant Articles
Explore our guides on structure, risk, and borrowing capacity.
How Does Securities-Based Lending Work?
Learn the process from portfolio review and LTV sizing to ongoing monitoring and margin requirements.
Read moreWhat Are the Risks of Securities-Based Lending?
Review major risk factors including market volatility, collateral calls, and concentration.
Read moreHow Much Can You Borrow with Securities-Based Lending?
Typical LTV ranges, portfolio requirements, and borrowing capacity examples.
Read moreApply for Securities-Based Lending
If you hold eligible investment assets and need liquidity without selling, our team can help you explore SBL options. Submit an application today. We'll match you with lenders and guide you through the process.