Securities Based Lending

The term Securities-Based Lending (SBL) refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital that can be used for almost any purpose such as buying real estate, purchasing property like jewelry or a sports car, or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan. Borrowers benefit from easy access to capital, lower interest rates, and greater repayment flexibility and also avoid having to sell their securities.