Lombard Loan
Certain lenders can structure loan facilities against liquid investments, such as equities and bonds. This type of lending is known as a Lombard Loan, a form of securities-backed lending.
The roots of the term “Lombard” date back to the Middle Ages and refer to the type of banking offered by Italian merchants from the Lombardy region.
What Is A Lombard Loan?
A Lombard loan is a lending facility offered by a bank secured against liquid assets. These could be listed equities or bonds, for example.
Lombard loans can be highly attractive lending solutions as they often attract highly competitive lending rates, are flexible in structure and prevent the need for the sale of investments to release cash.
borrowing against shares
To secure loans against shares, you should typically have a diversified share portfolio worth in excess of £250,000. Lenders like lending against a portfolio which are nicely spread out over numerous shares.
However, there are certain lenders that can offer a single-stock loan position.
Speak with an expert
At Advias we obtain the best possible Lombard Loans via our extensive database of lender contacts.
We offer a personal service, you deal with an expert who can understand your needs and deliver accurate solutions in a timely manner.
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Our Guide to Securities Backed Lending
Guide to Securities Backed Lending
Securities-backed lending provides ready access to capital. From Property Development Finance and Bridging Finance to standard mortgages, you can use securities-backed lending (also known as Lombard loans) for various purposes.
Securities-backed lending can be an exceptionally useful tool for creating liquidity quickly. As well as more “traditional” Lombard loans against a diverse portfolio of liquid, listed securities, Advias can also broker more unusual deals.
Lenders in this space provide funding while using the securities available to a borrower. These loans are typically used to access liquidity quickly, allowing investors to take advantage of time-sensitive opportunities.
Building up a representative portfolio to gain access to this lending space change can be challenging. Advias has a proven track record in acting in clients’ best interests and negotiating the best outcome on their behalf.
