Fast, Flexible, and No-Fee: How Investment-Backed Loans Can Help You When the Opportunity Arises

If you have invested for your future but also need the extra cash much sooner, it is possible to have both with Investment Backed Lending (IBL).

Whether you want to buy something that just went on sale or just need the extra cash, IBL could give you access to extra funds when you need it most, without disrupting what you’ve put in. side for your future.

What is an investment backed loan?

IBL can be considered an overdraft. It is a form of financing that allows eligible clients to borrow against their investments without having to withdraw money from their existing portfolio.

As you are borrowing against your investment, tedious asset valuations are not necessary. So the process can be relatively quick – everything is agreed and set up in less than two weeks, rather than months.

This is not its only advantage however. The service has many potential benefits, including:

  • no fees – you pay no legal, appraisal or arrangement fees
  • no fixed term repayment
  • multi-currency availability – IBL is available in five currencies: British Pound, Euros, US Dollars, Swiss Francs and Japanese Yen
  • flexibility – you can borrow a single lump sum at one time or part of it over time, and you only have to pay the interest once you start using it
  • cost effective – IBL offers favorable rates, so costs may be more favorable than other forms of borrowing

However, there are certain conditions to be eligible for the IBL.

“You need to have a sufficient level of investment managed by Coutts, at least £ 500,000, and you need to have a sufficient level of expertise and professional knowledge to get into this type of product,” said Travis Millyard, Director of Coutts International. Private Bank.

“It starts with a conversation with your private banker to see if you are eligible. If you qualify, IBL could be a versatile fundraising tool for you to take advantage of personal or business opportunities as they arise.”


At Coutts, we’ve had clients who use IBL for everything from buying a classic car to buying investment property.

For a client, a hedge fund manager, this was the perfect way to diversify his portfolio. They wanted to explore alternative investments and were looking for opportunities in the area of ​​private equity.

The client saw IBL as an efficient way to do this as it leaves their existing investments intact, but gives them the cash to invest in a project as the right one emerges.

Some of our clients have also used IBL to borrow from their existing portfolio and invest in the UK Enterprise Fund – which we launched last year with leading UK growth investor BGF to help innovative UK companies grow.

Find out about loans secured by investments at COUTTS.

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