INSIGHTS

Rampart Capital is proud to offer loans to investors - allowing them to leverage their existing assets for new opportunities.

Understanding a Rampart Loan: A Strategic Financing Tool for Investors

We’ve created the Rampart Loan to enable investors to use their existing assets to invest in their next opportunity - without having to sell those assets.   The Rampart Loan is built on the same approach of Lombard Loans, which have been around for nearly 500 years - first being used in the Lombardy region of Italy.

Lombard Loans are still being used, and are a popular form of secured lending offered by private banks in Europe and Asia, often used by high-net-worth individuals and institutional investors to invest in new opportunities without having to sell any existing assets. These loans allow borrowers to access capital for new investments, by using their existing investments, such as stocks, bonds, or other financial assets, as collateral.

What is a Lombard or Rampart Loan?

It is a type of loan where the borrower pledges a portfolio of assets to secure financing. The key feature of this loan is its flexibility and relatively quick access to liquidity, making it an attractive option for investors looking to leverage their assets without having to sell them.

How do these loans work?

The borrower receives a loan that is a percentage of the value of the pledged assets, typically ranging from 5% to 50%, depending on the type and volatility of the collateral. The lender will often monitor the value of the collateral and may require the borrower to top up their assets or repay part of the loan if the value of the collateral falls significantly.

Key Benefits of Rampart Loans

1. Liquidity Without Liquidation: Investors can access capital without selling off their investments, preserving their long-term positions and avoiding potential capital gains tax.
2. Flexible Use of Funds: The loans can be used for a variety of purposes, including funding new investments, covering short-term liquidity needs, or even as a means to diversify portfolios.
3. Attractive Interest Rates: Since these loans are secured by assets, they typically come with lower interest rates compared to unsecured borrowing options.
4. Access to Capital in Emergencies: In times of market volatility or when needing immediate liquidity, Lombard loans provide a viable solution to access funds quickly, without the need to sell underlying assets.
5. Potential Interest Tax Deductions: If the loan proceeds are used for income-producing purposes (like acquiring rental property or income-generating investments), the interest may be tax-deductible.

Why Rampart Capital?

Backed by Australia’s leading founders, we believe in ambitious investors and the value to them of unlocking liquidity. We’re driven to provide an exceptional customer experience with fast response time, offering loans with simple execution and minimal bureaucracy.