Lombard lending through Firenze
If you’re looking for more information on how to support your client’s short-term liquidity needs, you’ve come to the right place. We now support Lombard lending arrangements through Firenze.
What is Lombard lending?
Originating in the Lombardy region during the Middle Ages, Lombard lending is one of the oldest and most established forms of secured borrowing. It enables clients to borrow against the value of their investment portfolio, providing access to capital without the need to sell assets.
How Lombard lending supports your planning
Rather than selling assets to access cash, clients can use their GIA holdings as security for a lending facility provided by Firenze. This facility is not available against assets held within an ISA or SIPP.
This may be relevant for clients who want to:
- Support their long term financial plans by using GIA investments as security.
- Avoid triggering unnecessary capital gains tax through disinvestment.
- Meet borrowing needs without moving assets away from their portfolio.
Only High Net Worth, advised clients are eligible as the facilities are unregulated credit agreements.
Our partnership with Firenze
Firenze provides Lombard lending arrangements and AJ Bell Investcentre supports these arrangements by accepting Firenze’s security over client GIA assets. When you recommend their facility, we can support the legal and operational steps smoothly.
You will deal directly with Firenze for all information, applications and ongoing management, including credit decisions and terms, as we’re not an introducer, credit broker or lender.
How the process works
You or your client contacts Firenze directly to explore eligibility and apply for a facility.
Firenze assesses the application and, if approved, sends the legal charge documentation to us.
We register the charge over the client’s GIA and put monitoring in place. Firenze manages the facility from that point onwards.
Before recommending this arrangement to your clients, we encourage you to visit Firenze’s website to help inform your decision.