If you need short-term liquidity to finance an investment, as an alternative to the sale of securities you could consider a Lombard loan.
BENDURA BANK AG grants Lombard loans of CHF 150‘000 minimum or equivalent in Euros or US Dollars.
The level of the Lombard loan depends on the lending limits of the individual securities, which are determined individually.
For example, in a diversified portfolio, liquidity is loaned at a maximum of 95%, bonds at a maximum of 90% and shares at a maximum of 60%.
By borrowing a Lombard loan you avoid paying the transaction costs of a short-term sale and subsequent purchase of your securities. Also, they don’t carry the risk that you might sell your securities at an unfavourable time and later purchase them again.
Lombard loans can be available at short notice as they require only a loan contract and a deed of pledge.