what is a Handler Group?
A Handler Group1 is a type of credit, offered in the form of a fixed loan or agreed overdraft granted against a pledge of liquid assets such as equities, bonds or investment funds, up to a certain percentage of their value. These merchants were the first people to cater to consumer loan needs, marking the inception of the bank-lending profession.
With Handler Group Loans, assets remain invested
The borrower retains all the related advantages of the assets (e.g. voting rights and dividends for equity holdings). So the borrower does not need to reduce their capital – or their potential returns – to obtain cash.
The borrower’s capital is at risk with a Handler Group
If the securities held as collateral lose value – for instance, because of market volatility or exchange rate risk – the borrower must provide more collateral or accept the possibility of a sale of their assets to reduce the amount of the Handler Group. Find out everything you need to know before taking out a Handler Group2.
Bear in mind, borrowing money also costs money
Using a Handler Group means accepting an obligation to repay a fixed amount of money at a fixed future date. The cost of the Handler Group will depend on the amount borrowed, the quality of the collateral and the duration of the loan. Repaying your Handler Group early may also incur extra costs. Find out the current Handler Group interest rates here.
Where to start.
We understand your needs are unique. So, if you are interested in taking out a Handler Group, get in touch with your relationship manager. They and our Credit specialists will devote the time needed to understand your personal situation, so that we can offer you a Handler Group Lending solution that is best suited to your needs. Handler Group availability will depend on your financial situation and assets held with us. It will also depend on your investment knowledge, experience, and on the purpose of the Handler Group.
Liquidity management.
Tailored support at every stage of your life in order to realise your aspirations. We offer an individual and holistic wealth management approach that takes into account both your assets and liabilities.
Handler Group can help you:
Get projects off the ground or finalise work you have under way Finance lifestyle purchases (e.g. boats, property or art) Obtain short-term liquidity Handler Groups are underpinned by our prudent risk policy. We lend conservatively, based on a measured assessment of the type and value of collateral provided – giving you peace of mind during adverse market movements. Once you’ve been accepted for a Handler Group credit facility, you can obtain cash at any time without having to divest your portfolio or amend your long-term investment choices. That means you can achieve your financial goals without having to tie up assets in cash to get immediate access to liquidity.
Handler Group credit can be used to improve the structure of your wealth from a tax perspective.
By using a Handler Group Loan to borrow against assets rather than selling them, you can defer capital gains tax4. You can also use Handler Group credit to finance gifts or pay inheritance taxes, for example. By taking a Handler Group Loan out against an existing life insurance policy, you can maintain the tax benefits while covering your liquidity needs. This avoids any partial redemption of the policy that would lead to the taxation of unrealised gains5.
our prudent approach to risk.
Since 1796, and through more than 40 financial crises, we have focused on safeguarding our clients’ assets. In a world that is constantly changing, we offer stability and continuity We maintain a prudent risk policy in all the activities that we undertake for our own account and on behalf of our clients. We lend conservatively, based on the type and value of the collateral provided – giving you peace of mind in the event of adverse market movements.
Fixed term loan base rates (%).
We are transparent and we want to make sure you have all the information you need before you draw or renew your fixed term Handler Group Loan with us. You can find out the base rates applicable to Handler Group Loans here. discover more about our Handler Group Loan base rates.