Refinance High-Cost Debt
Replace expensive facilities with portfolio-secured credit to lower carry.
What it’s for
Reducing interest expense on existing business or investment loans.
Replacing inflexible lines with a draw-as-needed structure.
Consolidating multiple short-term facilities into one efficient source of liquidity.
How it works
The facility is secured against eligible marketable securities in your portfolio.
Draw only what you need; interest accrues on drawn balances, not undrawn limits.
Proceeds are used to repay the high-cost lender, lowering ongoing carry.
Capacity is determined by collateral quality, advance rates and concentration limits.
Why clients use it
Lower carry: Portfolio-secured pricing can materially reduce interest expense.
Flexibility: Revolving access to liquidity, aligned to cash-flow timing.
Continuity: No forced sales of core holdings; your strategy remains invested.
Key considerations
Market risk: Collateral declines can trigger margin calls requiring additional assets or partial repayment at short notice.
Leverage risk: Borrowing amplifies losses as well as gains.
Eligibility: Asset criteria, issuer/sector limits and haircuts apply; documentation and verification required.
Costs: Interest on drawn amounts; where relevant, incremental custody, brokerage or FX charges.
For wholesale clients only. Availability subject to eligibility, collateral criteria and risk assessment.
Important: Volans does not provide personal financial advice. The information on this page is general and does not take into account your objectives, financial situation or needs. You should seek independent financial, legal and tax advice before acquiring any Volans product or facility. Our services are available exclusively to wholesale clients as defined under the Corporations Act 2001 (Cth). Securities-based lending involves significant risks, including margin calls, forced sale of assets and the amplification of losses. Ensure you understand these risks before proceeding.