Investment Backed Lending could help you unlock liquidity from your portfolio while maintaining your long-term investments.
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Private Banking
Fast, flexible lending — backed by your investments
Why consider Investment Backed Lending?
Whether you’re seizing a rare acquisition, investing in a new venture or supporting those closest to you, this form of securities backed lending could give you swift access to funds when you need them most — without compromising your long-term wealth strategy.
How does it work?
Investment Backed Lending could enable you to borrow against eligible investments from your existing portfolio, preserving your capital while providing the flexibility to act when timing is critical. It’s an efficient, cost-effective solution for clients who value agility without sacrificing financial strategy.
It could allow you to borrow against your eligible investments — typically structured as an overdraft, though loans are also available. Either way, with no need for time-consuming valuations, the process is streamlined and can be completed in days, subject to approval.
Eligibility criteria
To qualify for investment backed lending, you must:
- hold over £1 million in investments with Coutts
- be aged 18 or over
- demonstrate a sound understanding of the risks involved
It may not be suitable for you if:
- you rely on the income and capital from your investments and cash to maintain a standard of living
- you’re considering it for residential property renovation or improvements
Lending against investments must not be used for residential property renovation or improvements.
The final decision whether to proceed must be your own and, in making your decision, you should carefully consider the comparison between borrowing costs and potential investment gains/losses.
Key benefits
Multi-currency availability
Available in five currencies to support your global ambitions – sterling, euros, US dollars, Swiss francs and Japanese yen.
Cost effective
No legal, valuation or arrangement fees, and no fixed-term repayment fee.
Flexibility
Choose between an overdraft, where you only pay interest on the amount drawn, or a fixed advance loan. You can have multiple loans as required under a single agreement.
Like any form of borrowing, it’s important to be aware of the risks versus the returns, and of what else is available. Investment Backed Lending is just one option and our Private Bankers are on hand to help you explore all possibilities.
Understanding the risks
Before you borrow against investments, you should understand these risks.
- If the security you provide is insufficient to support the amount you have borrowed, you may be required to rectify the shortfall at short notice – this is referred to as a margin call.
- If your borrowing is in a different currency to the limit, fluctuating exchange rates could result in the limit being exceeded and you may be required to rectify the shortfall at short notice – this is also referred to as a margin call.
- If you borrow to purchase investments and these investments are themselves provided as security for your liabilities, your losses or gains could be magnified.
- Investment values can fall as well as rise, your capital is at risk.