Entrepreneurs are no strangers to liquidity tension. Building and scaling a business demands continuous investment, yet personal wealth is often locked inside illiquid assets—company shares, long-term investments, retained profits or offshore structures. Cashflow can be unpredictable, opportunities can be time-sensitive and conventional lending does not always reflect the economic reality of entrepreneurial wealth. In 2025, this gap between asset value and liquid capital has widened, driven by uneven markets, higher interest rates and cautious commercial lenders.

Against this backdrop, Lombard lending has become an increasingly valuable tool. By borrowing against an investment portfolio rather than selling it, entrepreneurs can unlock liquidity quickly, preserve long-term growth positions and avoid diluting ownership. This flexibility allows founders to act decisively on opportunities without disrupting their broader wealth strategy. Whether funding expansion, bridging cashflow, covering tax obligations or preparing for a liquidity event, Lombard loans provide a level of agility that traditional banking channels cannot match.

At Willow Private Finance, we work with entrepreneurs across technology, real estate, finance, media, healthcare and international markets. Many have complex income structures, irregular cashflows or multi-jurisdictional assets that do not sit neatly within standard underwriting models. Our work on High Net Worth Mortgages in 2025: What Lenders Look For Beyond Income showed how asset-based underwriting is now more aligned with the realities of entrepreneurial wealth. This article explores how founders and business owners are using Lombard lending strategically in 2025, and how these facilities can be structured safely to support both business growth and long-term financial stability.

Why Entrepreneurs Face Unique Liquidity Challenges

Entrepreneurs often appear highly liquid on paper while experiencing very little day-to-day liquidity. This contradiction arises because entrepreneurial wealth is typically concentrated in business equity, long-term funds, private market investments or international structures. These assets can represent substantial net worth, but converting them into spendable capital—especially without negative consequences—is far more complex.

In 2025, several factors amplify these challenges. Capital markets remain selective, and founders relying on external fundraising may find investment cycles slower than expected. Debt financing options for SMEs and mid-market businesses have tightened, and underwriting sensitivities to revenue fluctuations mean commercial lenders remain cautious. Additionally, the personal income of entrepreneurs often fails to reflect their true financial capacity. Many founders take low salaries for tax efficiency or reinvest revenue into growth, leading to affordability assessments that underestimate their real economic strength.

Liquidity timing also creates pressure. Tax events such as dividend distributions, equity vesting, year-end liabilities or capital gains often arise at times when the business requires capital reinvestment. Entrepreneurs cannot afford to withdraw funds at the wrong moment, nor can they rely on slow banking processes. Lombard lending resolves this mismatch by providing immediate access to liquidity without requiring income verification, business underwriting or asset liquidation.

How Entrepreneurs Use Lombard Loans Without Selling Shares

Many entrepreneurs have strong investment portfolios—either built personally or through proceeds from earlier ventures. These portfolios often include equities, ETFs, fixed income, cash holdings or professionally managed accounts. Selling these investments to raise capital may disrupt long-term strategy, incur capital gains tax or remove exposure to assets positioned for compounding growth. Founders typically prefer to keep their portfolios intact, using them as stabilising wealth anchors while building their businesses.

Lombard loans allow entrepreneurs to borrow against these portfolios, using them as collateral without selling. The private bank assesses the composition, liquidity and diversification of the assets and sets an appropriate lending value. Funds can then be drawn for almost any legitimate purpose—business growth, cashflow bridging, tax payments, property deposits, capital calls or personal liquidity—without altering the structure of the underlying investments.

This approach preserves long-term wealth creation. Instead of reducing exposure to their investment strategy, entrepreneurs maintain their market positions while gaining the capital they need immediately. For founders who view their investment portfolio as a buffer against business volatility, Lombard lending is a way to strengthen both sides of their financial life rather than weaken one to support the other.

Using Lombard Lending for Business Opportunities

Entrepreneurs operate in an environment where timing is critical. Opportunities arise quickly: a strategic acquisition, early-stage investment, technology purchase, product development sprint, or expansion into new markets. Missing the opportunity may cost significantly more than the short-term cost of a Lombard facility.

A Lombard loan provides immediate access to capital, often within days, allowing founders to act long before commercial finance or external fundraising becomes available. This function is particularly important in high-growth sectors where speed is a competitive advantage. Entrepreneurs can seize opportunities as they arise, then repay the facility as business revenues or investment returns materialise.

This timing flexibility also helps founders negotiate from a stronger position. Rather than raising equity at unfavourable terms or accepting restrictive debt during urgent periods, they can use a Lombard loan to stabilise cashflow and buy time, ensuring that major financial decisions are made strategically—not reactively.

Managing Tax Events with Lombard Facilities

Tax planning is a key driver for entrepreneurs using securities-backed lending. Business owners face multiple tax events across the year: year-end liabilities, dividend payments, capital gains, stock option exercises, relocation tax charges and regulatory filings. These events often land at times when liquidity is constrained or earmarked for business reinvestment.

Using a Lombard facility avoids forced asset disposals, which may crystallise gains unnecessarily or reduce portfolio performance. Instead, borrowers can meet tax deadlines confidently and then repay the facility once cashflow events or distribution cycles occur. This approach is significantly more efficient than selling investments solely for timing reasons.

We discuss tax-driven borrowing further in Using Lombard Loans for Tax Bills and Liquidity in 2025, where the same principle applies: liquidity should never come at the expense of long-term portfolio strategy.

Why Private Company Shares Are Treated Differently

Entrepreneurs naturally wonder whether they can borrow against their own company shares. The answer depends heavily on the nature of the company, the share structure and the degree of liquidity. Most private banks are extremely cautious about non-listed shares because they lack market pricing, have uncertain liquidity and cannot easily be valued under stress.

For this reason, most lenders prefer listed securities, managed portfolios or diversified funds. High concentrations in a single asset—even a successful private company—represent significant volatility risk, which contradicts the risk models used to support Lombard lending.

In rare cases where private company shares are pledged, the lender will require extensive documentation, third-party valuation, shareholder agreements, restrictions analysis and legal opinions. This process can take months, making it unsuitable for entrepreneurs seeking fast liquidity. Even when approved, lending values are extremely conservative.

Because of this, entrepreneurs typically use their liquid investment holdings as collateral, not their business equity. This maintains separation between business risk and personal wealth while ensuring that borrowing occurs safely within the limits of a diversified portfolio.

Risk Management for Founders Using Lombard Loans

While Lombard lending is one of the most flexible tools available to entrepreneurs, it must be used responsibly. The main risk is market volatility. If portfolio values fall significantly, the LTV may breach the agreed threshold, prompting the bank to request additional collateral or partial loan repayment. As discussed in detail in Margin Calls in Lombard Lending: Risk Management in 2025, this is a predictable and manageable scenario when facilities are structured correctly.

Entrepreneurs should avoid borrowing at the maximum permitted LTV. Conservative use of leverage ensures resilience against market fluctuations, especially during periods of business uncertainty. Adequate liquidity should be maintained outside the pledged portfolio so that if a margin call arises, it can be resolved immediately without forced sales.

Working with a specialist adviser ensures that lending is matched appropriately to portfolio structure, business plans and liquidity expectations. Done correctly, Lombard lending supports entrepreneurial growth without undermining long-term financial security.

Outlook for Entrepreneurial Lombard Lending

In 2025, private banks continue to refine their Lombard lending frameworks in ways that directly benefit entrepreneurs. Risk modelling has become more sophisticated, enabling banks to accept a wider range of portfolio structures while maintaining strong protection. Approval times continue to shorten, especially for clients willing to place discretionary portfolios with the lending bank.

We expect that as markets stabilise and rates begin adjusting over the next 24 months, Lombard lending will become an even more prominent tool for entrepreneurs who need liquidity without compromising ownership. As private markets expand, founders will increasingly rely on these facilities not only for short-term cashflow but also for long-term financial planning.