Lombard Loans: Leverage Your Portfolio’s Value
Need to access funds quickly but don’t want to sell your stock?
Our Lombard loan service lets you use your existing investment portfolio as security, giving you fast access to capital while keeping your long-term investment strategy intact.
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What Are Lombard Loans?
Lombard loans provide a unique way to access funds without selling your valuable assets.
This financial tool, originating from Italy’s Lombardy region, allows you to borrow against the assets held within your investment portfolio.
Your securities act as collateral, similar to how a property secures a bridging loan.
This arrangement lets you tap into your investments’ value while maintaining your long-term financial strategy. The bank holds your assets in a custodial account, offering a credit line based on their worth.
Key Features of Lombard Loans
Lombard loans offer flexibility and a tailored approach.
You can borrow against various liquid assets, including stocks, bonds, and investment funds. The loan-to-value ratio usually ranges from 50% to 60%, depending on your portfolio’s composition and diversity.
These investment backed loans are available in major currencies, including GBP, USD, and EUR, catering to international investors.
Interest rates are competitive due to the reduced lender risk.
Repayment options vary from short-term facilities lasting a week to arrangements extending up to 24 months, aligning with your specific financial needs and market outlook.
Advantages of Lombard Portfolio Loans
Choosing a Lombard loan brings several benefits:
Quick access to substantial funds, often within days
Maintain your investment strategy and potential market gains
Possible tax efficiency, avoiding capital gains tax triggered by selling assets
Competitive interest rates compared to traditional borrowing methods
Flexibility to use funds for various purposes, from investments to major purchases
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Common Uses for Lombard Loans
Lombard loans or portfolio loans offer versatile financing solutions for a variety of needs and situations.
From property acquisitions to business expansion, these short-term loans provide quick access to funds without disrupting your investment strategy. Let’s explore some of the most common and effective ways our clients use Lombard loans to achieve their financial goals.
Property Acquisition
Lombard loans excel in property transactions, enabling quick purchases in competitive markets. Whether you’re targeting prime residential or commercial properties, these loans provide the agility to act swiftly.
Business Growth
For entrepreneurs, Lombard loans fuel growth without diluting equity or lengthy traditional loan processes. Fund new projects, acquire equipment, or finance mergers and acquisitions with ease.
Investment Opportunities
Capitalise on lucrative market conditions promptly. Increase your market exposure or diversify into new asset classes without liquidating existing positions.
Tax Obligations
Meet substantial tax bills, including inheritance tax, smoothly. Fulfil your obligations without disrupting long-term financial plans.
High-Value Purchases
Acquire significant assets like fine art or yachts while keeping your investment portfolio intact, potentially benefiting from continued market appreciation.
The Lombard Loan Process
Securing a Lombard loan is straightforward:
- Initial consultation to assess your needs and portfolio
- Expert evaluation of your assets, considering liquidity and market volatility
- Loan approval and credit line establishment, often within days
- Ongoing monitoring of market conditions and portfolio value
The monitoring process ensures the loan-to-value ratio remains within agreed parameters, providing security for both you and the lender.
How Fast Can You Access Funds?
These loans stand out for their swift processing times, with an efficiency similar to bridging loans.
Unlike traditional mortgages, which involve lengthy property valuations, Lombard loans focus on your investment portfolio as collateral.
This streamlined approach often results in rapid fund access – sometimes within 24 hours, and typically within a few days of approval.
At Bridging Finance London, we leverage our extensive network of trusted lenders and our expertise in high-value lending to expedite the process.
Our team knows how to present your case effectively and negotiate favourable terms, ensuring you get the best deal with minimal delay. Whether you’re facing a time-sensitive opportunity or an urgent financial need, we’re equipped to help you tap into your portfolio’s value quickly and efficiently.
Understanding the Risks
While these loans offer numerous benefits, consider these factors:
- Market volatility can affect your portfolio’s value, potentially leading to margin calls
- Interest rate fluctuations may impact borrowing costs, especially for variable-rate loans
- Currency exchange rate movements add complexity for portfolios with international securities
Qualifying for a Lombard Loan
Eligibility typically requires:
- Minimum portfolio value, often starting at £250,000
- Highly liquid assets traded on major exchanges
- Straightforward documentation proving asset ownership and current market value
While your credit history may be considered, the focus remains primarily on your portfolio’s quality and value.
Why Choose Us for Your Lombard Loan?
Extensive expertise in high-value lending
Access to over 250 lenders for competitive terms
Tailored solutions for complex financial scenarios
Efficient application process for quick fund access
Ongoing support and advice to optimize your borrowing strategy
contact usNeed some help?
Call us today to discover your options. Our market knowledge and network of trusted lenders can deliver bespoke terms in 24 hours.
To speak with a loan specialist, please call us on 020 3488 5706
