Securities-Backed Lending Advisory

When liquidity needs arise, whether planned or unexpected, selling investments is not always the best answer. A securities-backed facility allows a client to borrow against eligible securities in their portfolio, accessing capital while staying invested in their long term strategy. Zentrix Global advises on whether this approach fits a client's situation and arranges the facility through our network of regulated partner lenders.

Why borrow rather than sell?

Stay invested

Avoiding a sale keeps the client's allocation on target and lets high conviction positions keep working.

Control over taxable events

Selling investments may have tax implications. Borrowing against them can give the client more control over when, and whether, those events occur.

Keep options open

Near term needs can be met without drawing down cash set aside for other opportunities or expenses.

Ready in advance

A facility arranged before it is needed allows clients to act on time-sensitive opportunities without seeking a last minute loan.

Common uses

A securities-backed facility can support a wide range of needs, including property purchases, bridge financing, tax payments, business expansion, consolidating higher cost debt, and significant personal purchases such as a yacht or private aircraft.

How it works

The amount available depends on the lending value of the securities pledged, which the partner lender sets as a percentage of each security's market value. Two thresholds usually apply: the level up to which new borrowing is permitted, and a higher maintenance level the portfolio must stay above. If market movements take the portfolio's value below that maintenance level, the lender may require additional collateral or a partial repayment, and may sell pledged securities to cover the shortfall.

Understanding these mechanics before borrowing matters. We help clients assess how much headroom to keep, which holdings are best suited as collateral, and how the facility fits alongside their broader liquidity planning.

Speak with an expert

Explore more

Remember

Zentrix Global LTD. acts as a structuring arranger and independent adviser. It is not a bank, deposit-taking institution, investment fund or securities broker. Zentrix Global LTD. does not itself extend credit or hold collateral; lending facilities are arranged through regulated partner lenders.

Suspected fraud, prior exposure to it, or an unverified transaction? Contact our Transaction Risk Assessment team.

Risk Warning

Risks of secured and structured lending

Leverage magnifies both the potential benefits and the potential losses associated with an asset.

Interest Rate Risk: Interest remains payable on the loan balance regardless of whether income from the pledged asset is sufficient to cover it.
Repayment Risk: The loan remains repayable in full even if the value of the pledged asset is insufficient, and any shortfall may need to be met from other resources.
Collateral Risk: Where minimum collateral values apply, additional collateral may be required, or the loan may need to be repaid, if the collateral's value decreases beyond specified levels.
Valuation Risk: The value of the pledged asset may fall, and the amount of interest payable may increase.

The risk factors listed above are not exhaustive. Always ask for the product specific documentation for full details and risk disclosures.

Legal Information

This is a marketing communication from Zentrix Global, which is the main advisory business within the Zentrix Global Group. Advisory services are delivered by various Zentrix Global companies around the world, depending on local laws and regulations. The services described in this document may be provided by different Zentrix Global entities, and members of the Zentrix Global Group may also trade in the products mentioned here.

This document is not independent investment research under the European Markets in Financial Instruments Directive ("MiFID") or other relevant regulations and is not subject to restrictions on dealing ahead of its distribution. This means Zentrix Global and its staff may have an interest in the products or services mentioned before this document is shared with you.

The information in this document is for general information only and is intended for Zentrix Global clients. It does not constitute, and should not be construed as, legal, tax or investment advice, or a solicitation, offer, or recommendation to buy or sell any financial products or services.

Some Zentrix Global Group offices may act only as representatives of Zentrix Global and are not permitted to sell products, provide services, or offer advice to customers. Not all products or services are available in all jurisdictions.

Before proceeding, please refer to the full long macro disclaimer and the Terms and Conditions available at our website, which provide further important information about the use of this material.