Securities-backed lending: which terms mean what?
Lombard credit, securities-based lending, stock loans, margin, share pledges and securities lending, separated so you can compare like with like.
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
Securities-backed lending (also called securities-based lending or SBL) is any borrowing of cash against listed investments. Lombard credit and margin are portfolio products from banks and brokers; stock loans and share-backed financing are secured on specific shares; securities lending is different again, because the shares themselves are lent. For a concentrated listed holding, specialist share-backed financing can be non-recourse, cross-border, with no personal guarantee.
Terms compared
| Term | What it usually means | Collateral | What to check |
|---|---|---|---|
| Securities-based lending | Umbrella term for cash borrowed against investments | Eligible portfolio or holding | Which actual product sits behind the label |
| Lombard credit / portfolio financing | Private-bank credit line | Diversified portfolio | Lending values, concentration limits, recourse |
| Margin lending | Brokerage credit for buying securities | Trading account | Maintenance level, floating cost |
| Stock loan | Fixed-term financing against specific shares | Named listed shares | Term, recourse, dividends and voting |
| Share pledge / share-backed financing | Financing secured by a pledge or charge over listed shares | Named listed shares | Disclosure, documents, guarantee |
| Securities lending | Lending the shares themselves, often for settlement or short selling | Cash or other collateral from the borrower | Not a way to raise cash against your shares |
Start with the transaction, not the label
- Are you borrowing cash, or lending shares?
- Is the collateral a diversified portfolio or one listed holding?
- Is the facility revolving or for a fixed term?
- Is a personal guarantee required?
- What can the proceeds be used for?
Stock loan vs securities lending
"Stock loan" is sometimes used for securities lending, where an institution borrows shares and returns them later. For a shareholder raising capital, the relevant products are cash financing against shares: margin, Lombard credit, stock loans and share-backed financing. Always confirm which one a document describes.
Securities-backed lending by market
Holders in Hong Kong, Singapore, Malaysia, Thailand, Indonesia, Taiwan, Japan, Australia and Vietnam use the same family of products, with local differences in settlement and disclosure. Our market guides cover each one, and Chinese readers can use the Traditional and Simplified Chinese versions of this guide.
Frequently asked questions
Borrowing cash against listed investments such as shares, while keeping ownership of them.
A Lombard loan is one kind of securities-based lending, offered by private banks against a portfolio.
No. A stock loan in the financing sense raises cash against shares; securities lending lends the shares themselves.
Bank and broker products are usually full recourse. Squadron Capital offers non-recourse, cross-border financing with no personal guarantee.
Squadron Capital works with listed holdings of USD 1 million or more.
Holding a concentrated listed 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.
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