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Portfolio Finance

Portfolio loans are  are short-term, loans that  offer borrowing amounts up to 60% of the value of the asset used as security. This makes them attractive for people who may not have the assets or time to secure a more traditional loan.


portfolio finance

Portfolio finance or lombard loans are a type of secured loan that offer borrowers access to larger sums of money than an unsecured loan would provide. This is because such loans require lenders to secure their loan against the borrower’s assets, making them a more attractive option for those looking for greater financial flexibility.

When taking out portfolio finance, the borrower will need to provide collateral in order to secure the loan sum they have requested. The most common form of collateral used with these types of loans is securities such as stocks or bonds held by a business or individual. In some cases, expensive items like artwork, cryptocurrencies and jewelry can also be accepted as part of the collateral agreement.

The key advantage to using portfolio finance is that they provide access to much larger sums of money than unsecured loans. This makes them ideal for those who need large amounts of capital, such as business owners and real estate investors. 

All in all, portfolio finance is an excellent choice for those who need larger sums of money and have assets they can use as collateral. It’s important to do your research beforehand to make sure that you understand the risks involved and that taking out a portfolio loan is the best option for you. With this knowledge, you can take advantage of the financial flexibility provided by these types of secured loans.

Portfolio Finance Example

Portfolio Finance Example

John wants to borrow £50,000 to start a small business. He has £100,000 worth of shares that he can use as collateral. He approaches StatusKWO and applies for portfolio finance. We agree to lend John the £50,000 as long as he puts up the £100,000 worth of shares as collateral. We will hold the shares as security for the loan, and John will be able to use the £50,000 to start his business. As long as John repays the loan on time, he will be able to get back the shares he put up as collateral.

Portfolio Finance for every business

  • Stocks and shares
  • Bonds
  • Crypto/ cryptocurrency 
  • Artwork
  • Intellectual Property

Key Features

A portfolio finance loan, also known as a portfolio loan, is a type of loan that is held and serviced by the lender rather than being sold on the secondary market. Key features of a portfolio finance loan include:

Flexibility: Portfolio loans offer more flexibility than traditional loans, as they can be customized to fit the specific needs of the borrower, such as the size of the loan, the term of the loan, and the interest rate.

If the collateral used to secure a loan is an asset that is subject to capital gains tax, such as a property or shares, the borrower may be able to defer paying the tax until the asset is sold.

No secondary market: Portfolio loans are held and serviced by the lender, rather than being sold on the secondary market. As a lender, we retain more control over the loan and can make decisions based on the borrower’s interests.

Higher LTV values: Portfolio loans often have higher LTV ratios than traditional loans, which means that borrowers can finance a larger percentage of the property’s value.

Rates from 4% p.a.

24 month loans


No credit scoring

Loans from £10,000

Decision in 24 hours

Up to 60% Loan to value

How does it work?

Once the loan is agreed the securities will be deposited in our custodial account which is controlled by us as the lender.

If the assets drop below a certain pre-agreed value, you will likely need to top the value of the assets held. Where a borrower does not, or cannot, provide further securities we  may be forced to sell a portion of the existing assets to reduce the loan.

Any unwinding costs of the assets before maturity falls to the borrower. If there is still an outstanding loan amount after all pledged assets are sold, the borrower is will remain liable for this sum.

how much interest will i pay?

The interest rate you’ll pay for portfolio facilities is tied to LIBOR or a standard base rate we set from the outset. We will also add its margin on top of this. Ultimately, interest rates will depend on the given securities and the overall risk of the transaction. Every loan is granted on an individual basis, and as a result, there’s no standard interest rate but very broadly, you can expect typical  interest rates to sit between 4% and 8%, although there will be deals where the interest rates fall outside of this bracket.

when will i receive the loan advance?

The underwriting process for most forms of portfolio finance is much more straightforward because the underwriting is  limited to the collateral used as security for the loan. In most cases, you might have access to your credit facility in as little as 24 hours

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Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.