One of Borro’s proprietary offerings is the luxury line of credit — a flexible lending structure that allows borrowers to draw capital against a collateral asset multiple times without shipping it back and forth between each loan. For clients who anticipate recurring short-term liquidity needs against a specific asset, the line of credit structure is significantly more efficient than individual one-off loans.
How the Luxury Line of Credit Works
A typical line of credit transaction begins with a client shipping their asset — a watch, handbag, or piece of jewelry — to Borro for initial appraisal and storage. Borro establishes a credit line based on the asset’s appraised value. The client can then draw against that credit line as needed, up to the established limit, without returning the asset or going through a new appraisal cycle each time.
When the client repays a draw, that capacity becomes available again — like any revolving credit facility, but secured entirely by the asset’s value rather than creditworthiness. Interest accrues only on the amount drawn and the time it is outstanding, not on the full credit line.
Who Benefits from a Line of Credit Structure
The line of credit structure is particularly valuable for three borrower profiles:
Business owners with irregular cash flow: A business owner who periodically needs $50,000–$200,000 to bridge a receivable, fund a purchase order, or cover a tax payment can access that capital quickly through the line of credit without re-engaging Borro’s full intake process each time.
Real estate investors: Investors who regularly encounter time-sensitive opportunities — a deal that needs to close before financing is arranged — can maintain a Borro line of credit as a standing liquidity facility, drawing when needed and repaying when the underlying deal clears.
Collectors who prefer to keep assets in storage: Some clients find it more convenient to maintain a high-value watch or handbag in Borro’s secure storage and access the line of credit as needed, rather than alternating between personal possession and loan cycles. The asset is stored more securely than at home and generates liquidity on demand.
Credit Line Limits and Asset Valuation
Credit line limits are established based on the asset’s appraised value at the time of initial setup, subject to periodic reassessment. For assets in stable or appreciating market categories — Hermès handbags, Rolex sport references in current demand — reassessment typically confirms or slightly adjusts the line. For assets in more volatile categories, Borro may reassess the line limit if market conditions change materially.
Borro communicates any line adjustments in advance of their taking effect. You are never surprised by a reduced credit availability without prior notice.
Accessing Your Line of Credit
Once your line of credit is established and your asset is in Borro’s custody, drawing against it is straightforward. Contact your Borro representative, specify the draw amount, and funds are transferred to your designated account. There is no new application process, no new credit check, and no new shipping — the asset is already in place and the line is ready to use.
Repayment works the same way — transfer funds to Borro and your available credit is restored. The process is designed to be as frictionless as possible for clients who use the line of credit as an ongoing liquidity tool rather than a one-time transaction.
Inquire about Borro’s luxury line of credit — a standing liquidity facility backed by the asset value you already own.
