Borro was featured in Barron’s Penta on July 13. The story is based on an in-depth interview with Dewey Burke, Founder and CEO of Luxury Asset Capital, the parent company of Borro, and highlights the process and benefits of alternative lending. The article is very timely as it dives into what makes this lending different and how the pandemic has impacted the business. Below are a few highlights from the piece and you can access the full story here.
PENTA: How does this process differ from a typical loan?
Dewey Burke: Because we are solely focused on the value of luxury assets and collateralizing them at a certain percentage, we don’t need the deep level of personal documentation and disclosure that the banks do. We focus on the value of the asset, how quickly we can get comfortable with what we believe it’s worth, and how quickly we can get money into the hands of our clients after taking possession. Banks are going to want mounds of paperwork… to try to fit you into their debt-to-income-ratio box. And that takes a lot of time. We focus on helping clients get liquidity quickly so they can seize opportunity to meet deadlines. It’s about speed for us.
PENTA: Have you noticed any shifts with the pandemic?
Dewey Burke: As the economy was booming, we were financing a lot of opportunity. Clients were doubling down on investments in operating companies, they were buying more real estate and adding to their collection of luxury assets. Everything was opportunity and growth. Now, in light of the virus, there is also the reality that people have to meet financial deadlines for businesses that are struggling, or potentially go out of business, and they may still be waiting on CARES Act and PPP funds. Our ability to fund extremely quickly has been crucial because time is of the essence for these businesses that need working capital.
PENTA: What does the recent acquisition of Borro mean for Luxury Asset Capital?
Dewey Burke: We took out our largest competitor, and we went from competing with them for deals and on marketing initiatives to completely owning the space.
Borro is our fin-tech [financial technology] lending online presence where individuals who Google search can find us. We utilize technology, so the process is extremely fast.
For larger transactions with ultra-high-net-worth clients, that’s where the white glove service of Luxury Asset Capital comes into play. We are referred by trusted advisors, such as attorneys, CPAs, or banks, and I’m not going to ask them to go online and fill out an application for a $3 million loan. It’s a higher level of service—we may fly to meet them and do the evaluation in the comfort of their home.
Check out the full story on Barron’s Penta.