How to Tap the Liquidity in Fine Jewelry and Diamonds for Coronavirus Emergency Cash
May 28, 2020 (PRLEAP.COM) Business NewsThe Coronavirus pandemic has thrown the budgets of many individuals, families, and small businesses into turmoil. Historically high unemployment levels and declining levels of business activity are driving a need for immediate, short-term cash to help cover expenses during the next several months of economic uncertainty. Traditional bank loans and lines of credit are becoming increasingly difficult to obtain, and even for those eligible, it can take several weeks or more for cash to become available. A timely and attractive alternative is a collateral loan. A collateral loan taps the equity many people have in the fine jewelry or diamonds they already own, resulting in money being wired into a borrowers bank account in as little as 48 hours. Fine jewelry and diamonds are the most frequently used form of collateral for collateral loans through Borro, the leading provider of collateral loans secured by luxury assets.
What is a collateral loan? Collateral loans are a reliable, fast, and easy way to access cash with no credit check, credit history, or financial disclosures. Instead, individuals can get a loan by using luxury assets such as luxury and classic cars, fine jewelry and diamonds, gold and precious metals, designer handbags and accessories, premier auction house collateral, luxury real estate, and even guaranteed sports or entertainment contracts. Many don't realize that owning these assets can make the most flexible, convenient, and immediate funding options available at moments when cash needs are unexpected and urgent. Borro is the leading national provider of collateral loans, having provided $450,000,000 in loans to over 15,000 investors, entrepreneurs, small business owners, and any luxury asset owner in need of cash but preferring not to sell assets.
What are collateral loans on fine jewelry and diamonds? Fine jewelry and diamond owners, collectors, and members of the trade including wholesalers, retailers, designers, and manufacturers can obtain a standard loan or a line of credit loan from Borro, in amounts ranging from $2,500 to over $5,000,000. Borro empowers clients to capitalize on the true value of their assets without the wait, and, more importantly, without the need to sell. Borro's in-house specialists have a combined 80+ years of experience with luxury assets. They are experts in this field with deep auction house relationships and a strong network of appraisers, traders, and dealers.
Who can get a loan on their fine jewelry and diamonds? Borro has made this funding option available to anyone with assets such as white or colored diamonds, emeralds, sapphires and rubies, estate and fine jewelry in the form of rings, bracelets, necklaces, pendants, brooches, earrings and more, from brands including Harry Winston, Cartier, Blue Nile, Van Cleef and Arpels, Mikimoto, Tiffany, and Bulgari.
The capital can be used for any personal or business reasons with cash available in as little as 48 hours. For example, a specialty lawyer with seasonal income needed capital to help cover living expenses over several low revenue-producing months. Liquidating securities to cover this period was an unattractive option due to market timing and tax considerations, and selling off luxury assets was undesirable. Using several fine jewelry assets, she obtained a $575,000 loan in a few days from Borro to cover her season expenses. After income production resumed a few months later, the Borro loan was repaid and her jewelry, which had been securely stored and fully insured by Borro, was returned. Another Borro client is a jewelry trading company that needed capital to realize an opportunity to augment inventory with some time-sensitive additions. Because the opportunity arose during a slow season, it did not have the adequate cash flow to finance it. Traditional lenders were not an option for this type of business. It used several fine jewelry assets from its existing inventory to obtain a $150,000 loan from Borro to acquire the new pieces. The loan was repaid a few months later after business picked up, and the assets used as collateral were returned to the jeweler's inventory.
What are the criteria to get a collateral loan on fine jewelry or diamonds? A Borro collateral loan offer is based on the secondary value of the asset. Value is determined based on the brand and model, condition, scarcity, age, and provenance. In addition, Borro delves into market feedback and mines insights from manufacturers, auction house records, and third-party data collectors. As part of Borro's diligence, they also review registers of lost and stolen items.
Who is Borro? Borro, a Luxury Asset Capital brand, is the leader in confidential loans that use the borrower's luxury assets as collateral. We are a timely alternative to traditional loans that are often either too slow, invasive & burdensome or, in some cases, unavailable. We unlock the equity in a wide range of luxury assets that are high in value but low in liquidity and execute transactions from thousands to millions of dollars in as little as one business day.
We were established to provide capital to individuals at critical moments because we can be trusted to move quickly and confidentially to meet individual and business financial deadlines. We have been a lender to over 15,000 clients, providing over $450 million in loans since our founding over a decade ago. Borro's industry-standard-setting levels of transparency, convenience, and service are making Borro the leader in trusted, alternative loan solutions.
For more information, please visit: https://borro.com/assets-we-accept/fine-jewelry/