Lombard loan vs stock loan vs margin financing
How private-bank Lombard credit compares with stock loans and margin financing for Asia-Pacific holders.
Last reviewed 2026-10-25
Education only. This is not financial, legal or tax advice, and it is not an offer. Terms vary by provider and case. Take independent advice before you sign anything.
The short answer
A Lombard loan is a private-bank credit line secured on a diversified portfolio. It suits clients with an existing banking relationship and mixed assets. A stock loan or specialist share-backed facility suits a concentrated listed holding, and can be non-recourse, cross-border, with no personal guarantee.
Comparison
| Lombard loan | Margin financing | Specialist share-backed facility | |
|---|---|---|---|
| Provider | Private banks | Brokers and banks | Specialist providers |
| Collateral | Diversified portfolio | Trading account | Specific listed shares |
| Structure | Revolving credit line | Revolving | Fixed term |
| Guarantee | Full recourse | Full recourse | Non-recourse, no personal guarantee |
| Single stock | Often limited | Often limited | Core use case |
| Relationship needed | Yes | Account | No banking relationship needed |
Lombard lending in Singapore
Singapore private banks offer Lombard credit lines against portfolios held with them. Concentrated SGX positions may receive lower lending values. Holders of large single positions often compare a Lombard line with specialist share-backed financing.
Lombard loans in Australia
In Australia, portfolio lending against ASX shares is offered by banks and brokers, often as margin lending. Holders of large ASX positions living elsewhere in Asia often look for a cross-border provider instead.
Frequently asked questions
A credit line from a private bank secured on a portfolio of securities held with that bank.
Yes. Lombard loan, Lombard lending and Lombard credit describe the same type of portfolio-secured facility.
Both are usually full recourse and revolving. Lombard credit is a private-bank product for broad uses; margin is a brokerage facility mainly for buying securities.
Banks often limit single-stock lending values. Specialist share-backed facilities are designed for concentrated holdings.
Yes, through private banks in Singapore and through banks and brokers in Australia, usually for clients with an existing relationship.
Holding a concentrated position?
Squadron Capital provides non-recourse, cross-border financing with no personal guarantee, for listed holdings of USD 1 million or more. A Fast Term Sheet gives you indicative terms to compare.
Get a Fast Term Sheet