Not all loans against public equity are created equal. And if you’re holding a significant position — whether as a founder, early investor, or family office — understanding the difference between a Lombard loan and a single stock loan can reshape your strategy.

Let’s break it down without the jargon.

The Lombard Route: Conservative, Institutional, Traditional

A Lombard loan is what private banks love to offer. It’s usually backed by a diversified portfolio — a mix of listed stocks, bonds, maybe some ETFs. It’s recourse, meaning you’re personally on the hook. And it comes with margin calls: if the market dips, you’ll need to top up your collateral — fast.

The upside?
If you have a great relationship with a private bank and a broad portfolio, you’ll likely get attractive rates. It’s a steady, institutional tool — ideal when discretion isn’t key and you can absorb some volatility.

The Single Stock Solution: Focused, Flexible, Quiet

Now, picture a different situation. You’re a founder holding a large stake in one company. You’re inside a lock-up or navigating a blackout period. You want access to liquidity — but without triggering public disclosures or selling.

That’s where a single stock loan comes in.

It’s typically non-recourse (you’re only at risk for the pledged shares), has no daily margin calls, and can offer higher LTVs — sometimes up to 80%. These loans are often structured by funds, not banks, and move faster, with less bureaucracy.

And perhaps most importantly: it’s quiet. No public filings. No noise.

Which One is Right for You?

If your capital is spread across multiple assets and you’re looking for stability, a Lombard loan might work.
But if you’re concentrated, strategic, and timing-sensitive — a single stock loan may give you exactly the edge you need.

Each has its role. The key is knowing when to use which.