From CHF 100,000 to CHF 50,000,000
A Lombard loan can transform an eligible investment portfolio or other qualifying assets into immediate liquidity while allowing you to retain ownership of the underlying assets.
PrestaFlex helps entrepreneurs, investors, shareholders, executives, family offices and asset owners identify and structure securities-backed and asset-backed financing solutions from CHF 100,000 to CHF 50 million.
Instead of selling investments to finance a new project, acquisition or investment opportunity, eligible assets can potentially be pledged as collateral to obtain a credit facility.
Keep your assets. Unlock liquidity. Create financial leverage.
What is a Lombard Loan?
A Lombard loan is a secured financing facility backed by eligible financial assets.
Rather than liquidating an investment portfolio, the borrower pledges eligible assets as collateral. The lender assesses the collateral and determines how much financing can be made available based on its Loan-to-Value ratio (LTV).
Rather than liquidating an investment portfolio, the borrower pledges eligible assets as collateral. The lender assesses the collateral and determines how much financing can be made available based on its Loan-to-Value ratio (LTV).
Typical collateral may include, subject to lender eligibility:
- Cash and deposits
- Listed shares
- Investment-grade bonds
- Certain life insurance policies
- Certain life insurance policies
- Diversified securities portfolios
- Other eligible financial assets
The exact lending value depends on the lender, asset quality, liquidity, volatility, diversification, currency and market conditions.
Flexibility
How does Loan-to-Value (LTV) work?
The Loan-to-Value ratio, or LTV, is one of the most important elements of Lombard financing.
It represents the percentage of the eligible collateral value against which a lender is prepared to advance funds.
For example:
Portfolio value: CHF 5,000,000 Eligible lending value / LTV: 60% Potential credit capacity: CHF 3,000,000
The actual LTV is determined after analysing the underlying portfolio.
Highly liquid and diversified assets may generally support a higher lending value than concentrated, volatile or illiquid positions.
Independent market examples illustrate why LTV must be assessed asset by asset: indicative lending values can differ substantially between equities, investment-grade bonds and other collateral types.
It represents the percentage of the eligible collateral value against which a lender is prepared to advance funds.
For example:
Portfolio value: CHF 5,000,000 Eligible lending value / LTV: 60% Potential credit capacity: CHF 3,000,000
The actual LTV is determined after analysing the underlying portfolio.
Highly liquid and diversified assets may generally support a higher lending value than concentrated, volatile or illiquid positions.
Independent market examples illustrate why LTV must be assessed asset by asset: indicative lending values can differ substantially between equities, investment-grade bonds and other collateral types.
What influences the LTV?
Asset quality
Credit quality and characteristics of the underlying investments.
Liquidity
How easily the collateral can be sold or valued.
Volatility
Higher volatility generally means a more conservative LTV.
Diversification
A diversified portfolio can present a different risk profile from a concentrated single-stock position.
Currency
A mismatch between the financing currency and collateral currency can create additional risk.
Concentration
Large positions in a single security, issuer or asset class can reduce lending capacity.
Benefits
Cash out without selling your portfolio
For many entrepreneurs and investors, the objective is not to sell wealth but to mobilise it.
A Lombard facility can provide liquidity while avoiding an immediate disposal of eligible investments.
This can be particularly useful when an investor wants to:
A Lombard facility can provide liquidity while avoiding an immediate disposal of eligible investments.
This can be particularly useful when an investor wants to:
Acquire a company
Use portfolio-backed liquidity as part of an acquisition or equity contribution.
Invest in real estate
Mobilise liquidity for an acquisition, equity requirement, development project or bridge situation.
Finance a business
Inject liquidity into an operating company without necessarily liquidating a private investment portfolio.
Capture an investment opportunity
Access capital when timing is important.
Provide equity for another financing
A Lombard facility may, depending on the structure and lender requirements, help provide liquidity required for the equity component of a larger transaction.
Bridge a temporary liquidity requirement
Finance the period between an immediate capital requirement and a future liquidity event.
Diversify investments
Unlock liquidity from existing eligible assets to pursue other investment opportunities.
Flexibility
Use your portfolio as a financial lever
A Lombard loan is not simply a liquidity product.
Used appropriately, it can become a capital allocation and leverage tool.
Instead of choosing between:
Used appropriately, it can become a capital allocation and leverage tool.
Instead of choosing between:
keeping your investments
or
selling them to finance a new project
А properly structured Lombard facility may create a third possibility:
retain eligible assets while borrowing against part of their value.
This can allow investors and entrepreneurs to deploy capital into another opportunity while maintaining exposure to their existing portfolio.
However, leverage also increases financial risk. A decline in collateral value can reduce the available credit limit and potentially trigger a requirement for additional collateral, repayment or liquidation of pledged assets. FINMA specifically identifies falling collateral values, margin calls and concentrated portfolios as important Lombard lending risks.
The Big Picture
Example: CHF 5 million portfolio
Consider an entrepreneur holding a diversified investment portfolio worth:
CHF 5,000,000
The entrepreneur wants to acquire another company but does not want to liquidate the investment portfolio.
After analysing the composition of the portfolio, an eligible lending capacity is established.
| Assets | Value | Illustrative LTV | Potential capacity |
|---|---|---|---|
| Cash | CHF 500,000 | 95% | CHF 475,000 |
| Investment-grade bonds | CHF 2,000,000 | 80% | CHF 1,600,000 |
| Diversified equities | CHF 2,500,000 | 60% | CHF 1,500,000 |
| Total | CHF 5,000,000 | CHF 3,575,000 |
These figures are illustrative only and do not constitute an offer or guaranteed lending value. Actual eligibility and LTV depend on the lender and collateral assessment.
The entrepreneur could therefore potentially obtain sufficient liquidity to finance part of an acquisition without immediately selling the underlying portfolio.
Who is it for
Lombard financing from CHF 100,000 to CHF 50 million
PrestaFlex works on financing requirements ranging from:
CHF 100,000 → CHF 50,000,000
CHF 100,000 → CHF 50,000,000
Solutions may be relevant for:
Entrepreneurs
Business owners
Shareholders
Executives
Professional investors
Family Offices
High-net-worth individuals
Asset managers and their clients
Wealth managers and their clients
- Corporate finance advisors
- Business introducers
Larger or more complex transactions can require bespoke structuring and potentially several financing partners.
Benefits
Beyond traditional Lombard lending
A broader approach to asset-backed liquidity Not every valuable asset fits within the traditional Lombard lending criteria of a private bank.
This is where the broader PrestaFlex financing network can become particularly relevant.
Depending on the transaction, jurisdiction, valuation, ownership and financing partner, we can assess financing or refinancing opportunities involving assets such as:
investment portfolios • financial securities • investment-grade bonds • funds • life insurance policies • luxury and collector cars • art collections • jewellery • yachts • aircraft • helicopters • machinery and industrial equipment • selected real estate assets
This is where the broader PrestaFlex financing network can become particularly relevant.
Depending on the transaction, jurisdiction, valuation, ownership and financing partner, we can assess financing or refinancing opportunities involving assets such as:
investment portfolios • financial securities • investment-grade bonds • funds • life insurance policies • luxury and collector cars • art collections • jewellery • yachts • aircraft • helicopters • machinery and industrial equipment • selected real estate assets
These structures should not all be described technically as conventional Lombard loans.
Instead, PrestaFlex can assess whether the appropriate solution is:
- Lombard financing
- Securities-backed lending
- Asset-backed lending
- Refinancing
- Refinancing
- Sale & leaseback
- Bridge financing
- or another collateralised financing structure
That distinction is important both commercially and legally.
Why work with PrestaFlex?
One financing requirement. Multiple potential solutions.
PrestaFlex takes a broader approach.
We analyse:
the borrower, the assets, the collateral, the required amount the LTV, the purpose of financing, the duration, the currency, the repayment or exit strategy
and determine which financing structure may be most appropriate.
Our objective is not simply to obtain the highest possible LTV.
Our objective is to identify a sustainable financing structure adapted to the client’s project and assets.
Financing expertise
From conventional debt to alternative and structured capital solutions.
Broad financing network
Access to banks, financial institutions, private lenders, funds and other specialised financing partners, depending on the transaction.
Complex situations
We can assess transactions that may fall outside standard banking criteria.
Switzerland and international transactions
Solutions can be assessed for Swiss and selected cross-border situations, subject to lender appetite, jurisdiction and compliance requirements.
Confidential approach
Sensitive financial information and transaction requirements are handled with appropriate confidentiality.
Benefits
For Wealth Managers, Asset Managers and Financial Advisors
Help your clients access liquidity without automatically liquidating their investments
A Lombard or securities-backed financing solution can also be highly relevant for wealth managers, asset managers, fiduciaries, lawyers, corporate finance advisors and other professional introducers.
A Lombard or securities-backed financing solution can also be highly relevant for wealth managers, asset managers, fiduciaries, lawyers, corporate finance advisors and other professional introducers.
A client may need capital for:
- a company acquisition
- a real estate transaction
- business liquidity
- an investment opportunity
- an equity contribution
a bridge transaction
Selling investments is not necessarily the only option.
PrestaFlex can work alongside the client’s existing advisor to assess an appropriate financing structure.
You retain your client relationship. We work together on the financing solution.
Become a PrestaFlex Financing Partner →
Risk assessment
Understanding the risks of a Lombard Loan
Lombard lending involves leverage and must be assessed carefully.
Solutions may be relevant for:
Market risk
If pledged investments decline in value, the collateral coverage and available credit capacity can fall.
Margin call risk
The borrower may be required to provide additional collateral or reduce the outstanding loan.
Forced liquidation risk
Under certain circumstances and contractual arrangements, pledged assets may have to be sold to restore collateral coverage. This is a recognised Lombard lending risk.
Concentration risk
A portfolio concentrated in one security, issuer or asset class may receive a lower lending value and presents greater risk.
Currency risk
Borrowing in a different currency from the collateral or underlying cash flows can create additional exposure.
Interest-rate risk
Financing costs may change according to the structure and interest-rate environment.
Liquidity risk
Less liquid assets may receive a significantly lower LTV or may not be eligible as collateral.
For this reason, PrestaFlex focuses not only on available leverage but also on collateral resilience, repayment capacity and exit strategy.
Raise Capital Without Compromising Control
CHF 100,000 to CHF 50,000,000
Your investment portfolio may represent more than accumulated wealth.
It can potentially become a source of liquidity, investment capacity and financial leverage.
Whether you are considering an acquisition, real estate investment, business expansion, bridge requirement or another investment opportunity, PrestaFlex can assess how your existing assets could support the financing structure.
Keep your assets. Unlock liquidity. Finance the next opportunity.