Non-recourse financing against listed shares: what it is and who offers it
A plain guide for holders of listed shares in Asia-Pacific who want capital without selling and without a personal guarantee.
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
Non-recourse financing lets a shareholder raise capital against listed shares without selling them and without giving a personal guarantee. It is offered mainly by specialist capital providers rather than retail brokers, and it is most often used by holders of large or concentrated positions who want to keep their shares and their other assets separate from the facility.
Squadron Capital describes its own financing simply: non-recourse, cross-border, no personal guarantee.
How non-recourse financing compares
| Non-recourse financing | Broker margin | Private bank Lombard credit | Bank stock loan | |
|---|---|---|---|---|
| Personal guarantee | None | Usually yes, full recourse | Usually yes, full recourse | Often required |
| Concentrated single stock | Core use case | Often low advance or declined | Often limited to diversified portfolios | Case by case |
| Cross-border holders | Designed for it | Account-based, local rules | Requires a banking relationship | Varies |
| Use of proceeds | Broad | Mainly buying more securities | Broad | Broad |
| Typical structure | Fixed term | Revolving | Revolving | Fixed term |
Who offers non-recourse equity-backed financing?
Retail brokers and most banks lend on a full-recourse basis through margin or Lombard facilities. Non-recourse financing against listed equity is offered by a smaller group of specialist providers that focus on listed shareholders, often working across several Asia-Pacific markets at once.
When you compare providers, look at who the contracting entity is, which markets and exchanges they work with, how quickly they issue indicative terms, how the documents treat your dividends and voting, and whether they ask for any guarantee at all.
Who uses it
- Founders and early shareholders of listed companies who want capital without reducing their stake.
- Family offices and holding companies with a concentrated listed position.
- Cross-border holders whose shares are listed in one market while they live or invest in another.
- Shareholders whose banks decline single-stock collateral or offer only small advances.
What to prepare before you ask for terms
- The stock name, exchange and number of shares.
- How the shares are currently held and in whose name.
- The amount and currency you want, and an indicative term.
- Any role you hold at the company (director, substantial shareholder) so disclosure can be planned.
Frequently asked questions
It means financing against listed shares with no personal guarantee. Squadron Capital describes its financing as non-recourse, cross-border, no personal guarantee. Read the documents of any provider with independent advisers.
Mainly specialist capital providers that focus on listed shareholders. Retail brokers and most banks offer full-recourse margin or Lombard facilities instead.
Yes. Concentrated single-stock positions are one of the main reasons shareholders look at non-recourse financing, because many banks and brokers limit single-stock collateral.
Squadron Capital works with listed holdings of USD 1 million or more.
Shareholders commonly ask about Hong Kong, Singapore, Malaysia, Thailand, Indonesia, Taiwan, Japan, Australia and Vietnam. Eligibility is assessed stock by stock.
A Fast Term Sheet request gives you indicative terms to compare before any commitment.
Looking for non-recourse financing?
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