{"id":7652,"date":"2026-10-29T08:00:19","date_gmt":"2026-10-29T07:00:19","guid":{"rendered":"https:\/\/balmontconseil.com\/blog\/emprunter-plutot-que-vendre-le-credit-lombard-evite-le-fait-generateur\/"},"modified":"2026-10-29T08:00:19","modified_gmt":"2026-10-29T07:00:19","slug":"emprunter-plutot-que-vendre-le-credit-lombard-evite-le-fait-generateur","status":"publish","type":"post","link":"https:\/\/balmontconseil.com\/en\/blog\/emprunter-plutot-que-vendre-le-credit-lombard-evite-le-fait-generateur\/","title":{"rendered":"Borrowing rather than selling: Lombard credit avoids the triggering event"},"content":{"rendered":"
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In summary\u2026<\/h2>\n

Selling securities to finance a project triggers capital gains tax: it's the sale itself that creates the tax, not the need for money. Borrowing against these same securities finances the project. without triggering this generating event<\/b>.<\/p>\n

The price to pay is not fiscal, it is financial. The bank only lends a fraction of the portfolio's value, and if the pledged assets fall, it calls on the margin \u2014 which must be covered in a few days, at the worst possible time.<\/p>\n

It's a tool for building up financial assets, not general financing. We advise against it more often than we implement it.<\/p>\n<\/div>\n

A project emerges\u2014an apartment, a stake in a company, a donation to be made now rather than in ten years\u2014and the first response is: "I'm going to sell a line of credit." It's the most expensive one, and nobody puts a price on it.<\/p>\n

1. Selling triggers, borrowing does not.<\/strong><\/h2>\n

The triggering event is the transfer of ownership \u2014 not the need for money.<\/strong><\/h3>\n

A latent capital gain costs nothing: it becomes taxable on the day of the sale, and only on that day. Financing through the sale means voluntarily paying, on a date dictated by the project and not by tax laws, a tax that was not due.<\/p>\n

Lombard lending reverses the logic: the bank lends, and takes the securities account as collateral. The securities remain with the client, continue to generate dividends and coupons, and are not sold.<\/p>\n

Specifically.<\/strong> You need \u20ac600,000. Your shares are worth \u20ac1.8 million, you paid \u20ac900,000 for them. To receive \u20ac600,000 net, you need to sell \u20ac745,000 worth, since half of what you sell is capital gain taxed at 30%. You lose \u20ac105,000 to get the money you needed.<\/b> By borrowing against these securities, you receive the \u20ac600,000 and keep the \u20ac745,000 invested. The tax is not eliminated: it is deferred to a date of your choosing.<\/p>\n

For the technician.<\/strong> Article 150-0 A of the French General Tax Code (CGI): Capital gains from the sale of securities and equity interests are taxable in the year of the sale. A single flat-rate levy under Article 200 A (12.8% of %) and social security contributions (17.2% of %, Article L. 136-6 of the French Social Security Code) are levied, totaling 30% of %, unless the taxpayer opts for the progressive tax scale; Article 223 sexies may also apply. Since a pledge does not transfer ownership, it is ineffective under Article 150-0 A. The enforcement of the security, however, constitutes a sale.<\/p>\n

2. One does not lend against a portfolio, one lends against a specific amount.<\/strong><\/h2>\n

Securities account pledging and coverage ratio<\/strong><\/h3>\n

It's a loan, usually in fine<\/i>, guaranteed by the pledge of a securities account or a capitalization contract. The bank never grants 100% of the value: it discounts each line item according to its volatility and liquidity, and the sum of the discounted values determines the amount loaned.<\/p>\n