Do any banks do collateral loan based on private illiquid stocks?

[Zach Stiegler]

Hello!

My aerospace company (over 10,000 employees) pays me highly in private stock, more than my salary at this point. My the average yearly return on the company stock is over 30%. Since this is much higher than conventional real estate buy and hold, I’d like to not sell any of it.

I’ve heard of banks lending based on stock portfolios for collateral. However being a private stock with offerings to cash out only twice a year, it doesn’t seem like any bank or private lender would want to let me borrower against it due to illiquidity and private shares.

Have you ever heard of a less liquid private stock used as collateral for a loan? What type of lender should I be looking for?

[Issac San Miguel]

Hey Zach,

Depending on the lender they can usually take into account about 50% of your stock holdings illiquid or not. However, the first question they are going to ask you is how you are intending to pay for the down payment.

Hope this helps!