Securing Reputable Short-Term Loans Against Fine Art – artmarketblog.com
In the past, obtaining a short term loan against a valuable asset has usually required a visit to the “traditional” pawn broker as there really weren’t any alternative, “high class” routes for obtaining a quick, reputable short-term loan against a valuable asset. But there is now thanks to UK company borro who offer secure, reputable short-term loans for a more discerning, “high class” clientele.
In February this year, borro, the UK’s fastest growing personal asset lender, announced it was expanding into the U.S. market with offices in midtown Manhattan, and via an online presence at www.borro.com. After experiencing a 3x increase in UK customers borrowing against their personal assets last year, borro will employ the same successful model launched in the UK for loans of up to $1,000,000 to the New York and Tri-state area secured against high-value personal assets such as luxury watches, fine art, antiques, and luxury automobiles.
Founded by Paul Aitken in 2008, borro has received growth funding from Octopus Investments, Augmentum Capital, European Founders Fund (Facebook, Linked-In, Alando.de, Jamba!) and Eden Ventures (Apertio, Truphone, We7). All of borro’s valuation experts have worked for leading auction houses, including Sotheby’s, Christie’s, and Bonhams, and all assets are stored in secure and insured specialist vaults/premises.
Proving how popular the borro loan service is, at the end of 2011, borro’s UK vaults and specialist storage contained assets worth in excess of £20 million. During 2011 the company also saw their average loan value increase to £3,500 (up from £1,000 in 2010). During the first ten days of their US soft launch, borro had already lent $100,000 with an average loan amount of $10,000.
Some of the loans against fine art that borro have facilitated include a £25,000 for a painting by Jean DuBuffet, £4,500 against a signed Banksy canvas print, £13,000 against a Jack Vettriano oil on canvas, £20,000 for a work by Samuel John Peploe and £45,000 for Simon Luttichuys painting. According to borro, a property developer recently took out a loan of £3,000 against a Damien Hirst painting to buy land, while another borrowed £1m against a fine art collection.
borro lends between £1,000 and £1m with a typical loan of 6 months. A monthly interest rate, tiered to the amount lent, is applied to each loan but the loan can be repaid at any time with no early redemption fees. If you do not pay off your loan, borro will sell your valuables to recover the amount borrowed, the outstanding interest and any costs incurred, returning any surplus to you.
borro’s rates include all costs associated with couriers, valuation, storage and insurance. There are no set up fees or early redemption penalties.
|Loan Amount||Monthly Interest||APR Equivalent|
|£100,000 and more||2.99%||39.1%|
|£20,000 to £99,999||3.99%||53.6%|
|Up to £19,999||4.99%||68.8%|
For more information visit http://www.borro.com
borro and its logo are registered trademarks of Borro Limited. Borro Ltd is regulated by the OFT, and has a Consumer Credit License No: 620035. Registered in England & Wales. Registered Office: Seebeck House, 1 Seebeck Place, Knowhill, Milton Keynes, MK5 8FR. Company Number: 6573695.
**Nicholas Forrest is a Sydney/London based art market analyst, art consultant and writer. He is the founder of the Art Market Blog (artmarketblog.com) which offers independent commentaries as well as research and analysis on the current art market, and has recently been published in Fabrik magazine, Verve magazine, Visual Art Beat magazine, Australian Art Collector magazine, Art & Investment magazine and many others. Nic has made several radio appearances (both nationally and internationally) as an art market expert and has received press from the likes of the New York Times, Conde Nast Portfolio and Times of London.
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