When you need cash but don’t want to part with your prized possessions, a collateral loan can be the right solution. From art and antique collections to high-end jewelry and watches, there are many luxury assets that can be used as collateral for a loan. Getting a collateral loan is different from getting a traditional loan.
The main difference is that the process is quicker and easier since the lender doesn’t have to assess your creditworthiness – the loan amount is primarily driven by the secondary market value of the asset(s) you use for collateral.
Here’s everything you need to know about using your luxury assets to obtain a collateral loan through Borro.
What Is A Collateral Loan?
A collateral loan is a financing strategy that provides immediate short-term cash to bridge the gap from now until other financial resources become available. Collateral loans leverage your past purchases of luxury assets – assets that are high in value but low in liquidity – including watches, jewelry and diamonds, handbags and accessories, precious metals, classic and luxury cars, fine art, and other assets acquired through premier auction houses. Obtaining a collateral loan involves very little paperwork, and requires no credit check or financial disclosures. The leading provider of collateral loans that use borrowers’ luxury assets as collateral is Borro.
How Does A Collateral Loan Work?
The loan process is highly personalized and begins by discussing the amount of capital needed and the asset or assets to be used as collateral with a Borro expert, either over the phone, through e-mail, or in-person at the company’s New York City or Denver offices. Based on that discussion, a verbal loan offer is provided, subject to the final valuation of the collateral. From there, assets are securely shipped to Borro for valuation, and a final loan agreement is provided for signature. Upon receiving the executed loan agreement, the loan proceeds are wired to the client’s designated bank account. Once the loan is paid off, the client’s assets are returned. Borro provides exceptional security, care, and handling of luxury assets during transport, valuation, and storage. Assets are insured from when they are shipped or brought to a Borro facility, during storage in its vaults, and until they are returned after a loan is paid off.
Types Of Assets That Can Be Used As Collateral
Collateral loans leverage your past purchases of luxury assets – assets that are high in value but low in liquidity – including watches, jewelry and diamonds, handbags and accessories, precious metals, classic and luxury cars, fine art, and other assets acquired through premier auction houses.