Who Qualifies for a Stock Loan? Eligibility Guide

Basic Eligibility Requirements

Stock loans are asset-based — your shares are the security, not your credit profile. That simplifies eligibility considerably compared to traditional bank financing.

1. Publicly-Traded Securities

Your shares need to be listed on a recognized exchange. SLS Group accepts securities from over 52 exchanges worldwide, including NYSE, Nasdaq, NYSE American, major OTC markets, and international exchanges across Europe, Canada, Asia-Pacific, and beyond. The key requirement is that shares have a verifiable market price and sufficient trading activity to support the loan structure.

2. Minimum Portfolio Value

SLS Group funds loans starting at $50,000 in portfolio value. There's no published ceiling — we work with positions ranging from $50,000 to $50 million or more. The actual loan amount is a percentage of the portfolio's market value (the loan-to-value ratio), not the full amount — so the loan proceeds will be less than the total position value.

3. Clear Ownership

You must own the shares outright, or have the authority to transfer them as security for the loan. If shares are held in a brokerage account in your name — or in the name of an entity you control — that satisfies this requirement. If there are existing liens, pledges, or other encumbrances on the shares, those need to be resolved before the shares can serve as security for a new loan.

4. Transferable Securities

Shares must be transferable to SLS Group as security for the loan. The vast majority of publicly traded shares held in brokerage accounts transfer electronically through DTCC (the Depository Trust & Clearing Corporation). Some restricted shares held in DRS or with a transfer agent require additional steps — including legal opinions or Form 144 filings in some cases — but can still qualify.

What You DON'T Need

One of the most common misconceptions about stock loans is that they resemble bank loans in their requirements. They don't. Because the loan is secured entirely by your securities, the usual markers of creditworthiness simply aren't relevant.

• No credit check. Your credit score has no bearing on whether you qualify or what rate you receive. Stock loans are non-recourse and asset-backed.
• No income verification. Pay stubs, tax returns, W-2s — none of this is required. The loan is secured by your securities, not your earnings.
• No use-of-proceeds requirement. Unlike an SBA loan or certain bank products, there's no restriction on what you do with the funds. Real estate, business investment, portfolio diversification, personal liquidity — it's your capital. The only restriction is using the loan proceeds to purchase more shares of the stock you transferred as security for the loan.
• No margin account. Stock loans are structured differently from margin. You don't need a brokerage margin account or any specific account type to qualify.
• No US residency. SLS Group works with borrowers in many international jurisdictions. Non-US residents can qualify as long as their securities and account structure are compatible with the loan process.

Securities That Qualify

The securities themselves do most of the qualifying work. Here's what SLS Group accepts:

Common stock — Any market cap, any exchange tier. NYSE-listed blue chips qualify alongside smaller Nasdaq companies, NYSE American listings, and OTC stocks including OTCQB and OTCQX tiers. Pink Sheet listings are evaluated on a case-by-case basis depending on trading volume and issuer reporting status.

Restricted stock (Rule 144 shares) — Shares subject to holding period requirements, lock-up agreements, or affiliate volume limitations can qualify for a stock loan even though they're not freely tradeable. The loan structure accounts for the restriction, and LTV is adjusted accordingly. See our detailed guide on restricted stock loans.

Microcap and OTC stocks — We specifically fund loans against smaller companies that most traditional lenders won't touch. Eligibility depends on average daily trading volume and market capitalization. Minimum thresholds apply, and LTV is calibrated to the position's liquidity profile.

International securities — Shares listed on major international exchanges are eligible, including stocks on the London Stock Exchange, Toronto Stock Exchange, ASX, Frankfurt, Hong Kong Stock Exchange, and others. ADRs trading on US exchanges also qualify.

Options and warrants — These derivative instruments require specialized structuring but can qualify for financing in certain circumstances. Learn more about options financing and warrants financing.

What Affects Loan-to-Value

Every stock loan is priced individually. The LTV ratio — how much we'll lend relative to the market value of your shares — is determined by several factors:

Exchange and market tier. NYSE and Nasdaq-listed large-caps typically qualify for the highest LTVs, up to 60–70% in some cases. Smaller exchange listings and OTC stocks receive lower LTVs that reflect the difference in liquidity and price discovery.

Average daily volume. Liquidity is the most important variable after exchange tier. A stock trading $10 million a day is far easier to manage as security than one trading $50,000. Higher volume supports higher LTV.

Volatility. Highly volatile stocks carry more pricing risk over the loan term. We factor in historical price movement when determining LTV. More volatile positions receive more conservative ratios.

Position size relative to float. If your position represents a significant percentage of the company's outstanding float, liquidation in a default scenario becomes more complex. Large positions relative to float receive lower LTVs to account for that execution risk.

Restriction status. Restricted shares — Rule 144 positions, lock-up shares, control stock — receive lower LTVs than freely tradeable shares, typically in the 25–40% range versus 40–60% for unrestricted positions.

Quick Eligibility Checklist

Before submitting your information, run through these five items:

• ☑ You hold publicly traded securities with a combined market value of $50,000 or more
• ☑ The shares are in your name (or the name of an entity you control)
• ☑ I have clear legal ownership and the authority to transfer the shares as security for the loan
• ☑ The shares are transferable — held in a brokerage account, DRS, or with a transfer agent
• ☑ You are comfortable using the shares as security for a loan term of 1–3 years

If all five apply, you're a strong candidate. Submit your ticker and position size through our calculator for indicative terms, or contact us directly for a confidential review.