Financial markets and instruments are rapidly changing and anyone keeping track of these developments will see things like virtual currencies becoming mainstream and the evolution of the sharing economy. Even the way people borrow money is changing and affluent persons that need loans have many options at their disposal. Traditionally, banks would provide loans against appreciating assets like real estate. New era lenders are offering efficient money against other high valued assets other than real estate.
Borrowing money is not restricted to one certain demographic. Wealthy individuals often get loans to solve short term cash flow issues or, in most cases, to use towards investment. Sometimes it is not feasible to put up hard assets such as real estate when money is needed. High value assets can be used to secure funding for that next big project. And because the asset is only put up as security as long as the loan is paid within the terms agreed, there is no financial or emotional loss to the borrower.
Such assets considered for security can include classic cars, luxury watches and jewelry, high end handbags, fine and vintage wines, high value artwork and of course, gold and silver. These types of assets are common with high and ultra high net worth individuals and using them for borrowing makes sense when traditional lenders and banks cannot provide an economical solution.
Borrowing against high value assets takes a provider that knows the business and understands the needs of its affluent clients. Because personal assets are involved, the company must have a reputation of trust and be able to deliver what is promised. In the UK, a company such as Unbolted provides first class service to its high end clientele. Their borrowing process is very easy to understand and execute. Unbolted can offer up to 80% of the asset’s value which is very a high loan to security ratio in this market. Affluent borrowers in the UK understand how to unlock the full potential of their high end assets by using lenders like Unbolted.
The financial industry is evolving at a very fast pace and we are seeing major changes in the way we do business. Everything from currencies, banking, borrowing and economies is shifting and adapting to global needs. Affluent individuals with a strong, non-real estate, asset base can get access to low rate loans in the UK on favourable terms. What was normally not considered useful in underwriting loans has now become an important part of the equation as lenders expand their offerings to high value asset lending.
By Doron Levy