The Alliance Lombard Finance is a groundbreaking alternative to the traditional Lombard lending concept that originates from the Lombardy region of Italy, renowned for its rich history of merchant banking houses dating back to the Middle Ages. The Alliance Lombard finance, combined with the No-Interest Islamic finance system, is integral to merchants accessing unlimited private Capital to operate and grow their business. Domestically & around the Globe.
If you have a private banking account, you may have noticed your bank offering "Lombard loans" or "Lombard lending facilities". While less known to the smaller business community, Lombard lending can represent an exciting financing alternative for those with access. In general, a Lombard loan is a kind of loan backed by assets called "collateral". The collateral pledged - must be liquid and sold quickly, such as stocks, bonds or select life insurance policies with a surrender value.
The Security pledged in a Lombard loan is fluctuating interest-based. And - are regularly reassessed, incurring additional costs to the borrower to bring up the value committed.
In contrast, the Alliance Alternative to Lombard Finance- Is secured with corporate resources and purchases Bespoken through Alliance.
In general, an Alliance Lombard loan is a loan backed by corporate resources, usually underutilized or overlooked. These are corporate or human resources that generate returns without risk. As a lead partner, our role is to protect the lender and the operator owner merchant from personal risk – if the borrower fails to repay the loan, the Alliance may sell the assets to get the money back.
The traditional Lombard finance system is similar to leveraging your home as a Guarantee for your mortgage. The difference is, a typical Alliance Lombard loan, the guarantee used as collateral are mostly corporate resources. Corporate resource-backed lending is the lifeblood of the Alliance trade exchange system for today's small to midsize companies.
An Alliance Lombard loan can be a cost-effective and flexible financing solution when you need a more significant amount to consolidate your ongoing monthly obligation into one. Or pursue an upcoming expansion opportunity. Even when you have high liquid wealth, selling your existing investments to get the cash you need may not be the best option for various reasons. You may prefer to stay invested in anticipation of favourable market development; continue to receive set returns or tax reasons.
Instead of selling, you can trade and use the assets as collateral. Flexibility is one of the main benefits of Alliance Lombard loans. Alliance offer them in all major currencies and across a range of business maturities, typically from 3 to 5 years. You can either repay the loan in full or roll it over (providing that you still have sufficient collateral). Another key advantage is the low cost. No-Interest because the collateral is repayable with a preset share of the income limits the risk. Unlike similar commercial lendings with higher interest and monthly payments.,
The two portions are: The lender's cost of financing for the particular currency and term is usually; represented by an interbank interest rate such as LIBOR. or other world's major currencies, including the dollar, euro, pound and yen, all with fluctuating-interest rates. The bank's fluctuating margin typically averages between 100 and 300 basis points (1 and 3 percentage points). In addition to interest, commissions and other fees may apply in some cases. All the loan's parameters, including the rate, flexibility of term, amount and fees, depending on the particular bank's policy and the size and history of your business with them – the bigger and more important you are for your bank, the better they will treat you. Note that Alliance Lombard lending is limited to commercial lending to member clients.
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