More brokers turn to luxury asset lending as funding uncertainty grows
Uncertainty in conventional funding due to current economic conditions has seen luxury asset short-term lender Suros Capital reporting increasingly buoyant new business with its loan book up over 200% year-on-year with significant growth in the last three months.
The lender said its average loan size is now over £150,000, with the loan book currently comprising of art and antiques (36%), jewellery and watches (29%), fine wine (25%), and classic and supercars (10%).
“We are seeing greater interest in luxury asset lending for some very good reasons,” Ray Palmer (pictured), director at Suros Capital commented. “Conventional short-term bridging finance is being increasingly challenged by economic circumstances.
“Pricing is becoming more difficult and with living costs rising, affordability and property valuation are becoming a greater issue for conventional bricks and mortar property-based lenders. In turn, potential borrowers are seeing purchase opportunities pass them by as lenders apply more rigorous checks so that speedy completion are having to be sacrificed.”
Palmer added that at Suros Capital, the focus is on the value of the asset being offered as security, completion is only limited by the time it takes to make a valuation, so funding can be completed on the same day.
“I am delighted to report that our business levels are growing because lending against luxury assets offers an increasingly pragmatic solution as an alternative source of short-term funding for all private and business purposes,” he said.
