Alternative Finance: Luxury asset lending

In this third instalment of our Alternative Finance series, we look at the option of luxury asset lending for obtaining both business finance and personal finance.

Missed the other articles in our Alternative Finance series? Invoice financing for small businesses and asset refinancing.

What is luxury asset lending?

Luxury asset lending allows you to obtain finance secured against luxury items you already own, such as luxury watches, classic cars and artwork. It is typically used to close property deals, make a quick investment, pay a tax bill or free up liquid cash for other purposes.

How does luxury asset lending work?

Through luxury asset lending a lender is able to offer a facility, using your owned luxury items as security. These are then appraised to determine their true, current value. Many factors are taken into account such as brand, model, condition, age and marketability.

Once an amount has been offered to you and you wish to proceed the lender will usually request to take possession of the items until the full terms of the loan are met.

What are the advantages of luxury asset lending?

• It is typically much quicker to receive funds secured against luxury assets compared to funds secured against other asset classes such as property.

• When opportunities or challenges arise that require you to act quickly you are able to use your luxury assets to secure liquid cash.

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CASE STUDY

What: Loan secured against luxury watch collection

Amount: £50,000.00

An existing client of ours required funds to pay an upcoming tax bill. As speed was of vital importance, the client did not want to release funds from their property as they felt that this would not complete in the given time frame.

Fortunately, they were able to offer their watch collection as security, comprising of several watches including a Patek Phillipe Nautilus and Rolex Daytona.

The whole process took 48 hours from enquiry to completion.

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Next steps

It is important to fully assess whether luxury asset lending is right for you and your business. If you would like to discuss your options further, please contact us here at AssetLend. We are able to advise on all aspects of luxury asset lending to make sure it is the right option for you and to help you obtain favourable terms with a lender.