FAQ — Global Stock Lending

Question 1

What is a non-recourse securities-backed loan?

Accepted Answer

A non-recourse securities-backed loan — also called a stock-backed facility or leveraged equity loan — allows you to borrow against the market value of your publicly traded holdings without selling them. The defining feature is non-recourse: if the stock declines and you choose not to repay, the lender's only remedy is the pledged securities. Your personal assets, income, real estate, and credit are never at risk. You retain legal ownership of the shares throughout the term and continue to benefit from any appreciation and dividends.

Question 2

How is a non-recourse stock loan different from a margin loan?

Accepted Answer

A margin loan is recourse — if the collateral falls below the maintenance threshold, the broker issues a margin call and you must deposit additional cash or securities immediately or face forced liquidation. A non-recourse stock loan has no margin calls. If the stock drops, you simply walk away from the collateral with no further obligation. You also retain title to the shares in a non-title-transfer structure, which is not the case with most margin arrangements.

Question 3

How much capital can I access?

Accepted Answer

We structure facilities from $1,000,000 up to $1,000,000,000 or more. The advance is based on the loan-to-value (LTV) ratio applied to your portfolio — typically up to 70% of the current market value of your eligible holdings. Our average engagement is in the range of $20 million.

Question 4

What securities qualify?

Accepted Answer

Most publicly traded equities listed on major exchanges qualify — including NYSE, NASDAQ, LSE, TSX, ASX, and other major international exchanges. Blue-chip, mid-cap, and many smaller-cap equities are eligible. Restricted shares and treasury stock held by companies are also considered on a case-by-case basis. Our underwriting team reviews each portfolio individually during the consultation process.

Question 5

Is this a non-recourse structure?

Accepted Answer

Yes. Every facility we issue is non-recourse. Our only remedy in the event of default is the pledged securities. Your personal assets, income, and credit are never at risk — and you retain the right to walk away from the facility at any time without further obligation.

Question 6

Is title transfer required?

Accepted Answer

No. We offer non-title-transfer structures, meaning you retain legal ownership of your securities throughout the entire term of the facility. The shares are pledged as collateral and held in a custodian account in your name — they are never transferred to the lender.

Question 7

Does borrowing against my stock trigger a taxable event?

Accepted Answer

Borrowing is not a sale. A non-recourse stock loan does not constitute a disposition of securities under standard tax treatment, so there is no capital gains recognition at the time of funding. You should consult your tax advisor regarding your specific situation, but the general principle is that you access liquidity without triggering the tax event that an outright sale would create.

Question 8

What happens to dividends and voting rights during the facility?

Accepted Answer

In a non-title-transfer structure, you retain legal ownership of the shares and continue to receive dividends throughout the term. Voting rights depend on the specific terms of your facility — this is addressed during the structuring process and documented in your facility agreement.

Question 9

Is a credit review required?

Accepted Answer

No. Our facilities are asset-based, not credit-based. There is no credit review, no personal income verification, and no tax return requirement. Qualification is based entirely on the value and eligibility of your securities holdings.

Question 10

What is the minimum portfolio size?

Accepted Answer

The minimum portfolio value for a facility with us is $1,000,000 USD. There is no maximum. Our typical engagement is in the range of $20 million.

Question 11

Do you work with international investors and companies?

Accepted Answer

Yes. We finance borrowers across North America, Europe, Asia-Pacific, the Middle East, and beyond. Holdings on major international exchanges are accepted. We work with individual investors, family offices, corporate treasury departments, and institutional holders globally.

Question 12

Can executives with restricted shares qualify?

Accepted Answer

Yes. We specialize in restricted share financing for corporate executives, insiders, and founders who hold shares subject to Rule 144 or other lock-up restrictions. These positions are evaluated individually based on the issuer, the restriction type, and the volume of shares. Our restricted shares program is specifically designed for this borrower profile.

Question 13

Can a company borrow against its own treasury stock?

Accepted Answer

Yes. Companies that hold treasury stock — shares previously issued and repurchased — can pledge those holdings to access working capital, fund acquisitions, or meet other corporate liquidity needs without selling the shares back into the market. This avoids the price impact and dilution signal that a secondary offering would create. Treasury stock facilities are structured on a case-by-case basis.

Question 14

How long does the process take?

Accepted Answer

From initial consultation to funded facility typically takes 5–10 business days. You will receive indicative terms within 24–72 hours of your initial consultation. Our in-house underwriting process eliminates the delays associated with outside approvals or committee reviews at third-party institutions.

Question 15

What happens to my securities during the facility?

Accepted Answer

Your securities are pledged as collateral and held in a custodian account in your name. You continue to receive dividends and benefit from appreciation. There are no margin calls. The pledge is released in full upon repayment, and your shares are returned to your full, unencumbered control.

Question 16

What are the facility terms?

Accepted Answer

Facilities are available with terms up to 10 years. Interest rates start from 3.9% depending on the collateral profile, LTV, and term selected. Proceeds are wired directly to your designated account upon execution of documentation. Full terms are provided in writing during the indicative term sheet stage.

Question 17

Is there any obligation when I reach out?

Accepted Answer

None whatsoever. Engaging with us is completely free and non-binding. We issue indicative terms and you decide whether to proceed — entirely on your own terms and timeline. There is no application fee, no commitment fee, and no obligation to close.

Question 18

What is treasury stock financing?

Accepted Answer

Treasury stock financing allows a corporation to borrow against shares it has previously repurchased and holds on its own balance sheet. Rather than selling those shares back into the market — which would dilute existing shareholders and signal weakness — the company pledges the treasury stock as collateral for a non-recourse loan. The proceeds can be deployed for acquisitions, capital expenditures, debt refinancing, or any other corporate purpose.

Question 19

Why would a company use treasury stock as collateral instead of issuing new equity or debt?

Accepted Answer

Issuing new equity dilutes existing shareholders and often signals that management believes the stock is overvalued. Traditional debt financing requires credit approval, financial covenants, and personal or corporate guarantees. A non-recourse treasury stock facility avoids all three: no dilution, no credit review, and no personal liability. The company accesses capital while keeping its cap table clean and its balance sheet flexible.

Question 20

Does pledging treasury stock affect the company's share count or EPS?

Accepted Answer

No. Treasury shares are already excluded from the outstanding share count for EPS calculations. Pledging them as collateral does not change their status — they remain treasury shares and do not affect diluted or basic EPS during the facility term.

Question 21

What is the difference between a non-recourse stock loan and a convertible note for a company?

Accepted Answer

A convertible note gives the lender the right to convert debt into equity, which creates dilution risk and cap table complexity. A non-recourse stock loan backed by treasury shares has no conversion feature — the lender's only recourse is the pledged collateral. There is no dilution, no new equity issuance, and no impact on the company's ownership structure.

Question 22

How is my information handled?

Accepted Answer

All borrower information is reviewed exclusively by our internal team under strict confidentiality protocols. We never share your details with any outside party without your explicit consent. There are no public filings associated with a non-title-transfer, non-recourse facility.

Question 23

Who will I be speaking with?

Accepted Answer

A senior member of the Global Stock Lending team — led by advisor James Martzall — will follow up within one business day to discuss your objectives and next steps. You will not be contacted by multiple parties or added to any marketing communications.

Frequently Asked Questions

The Structure

Qualification

The Process

Treasury Stock & Companies

Confidentiality

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