Sometimes opportunities arise that are undeniably great but with a small window for action. Usually, businesses do not have the capital on hand to take advantage of such opportunities without placing a strain on finances. However, if you have fine wine, artwork, antique watches or other similar valuables in your portfolio, you may be able to leverage your luxury assets to get the cash you need for sudden investment opportunities. As is the case with any financial arrangement, it’s important to understand how this type of loan works before diving right in.
How it Works
Limited loan documentation is required for this type of arrangement, meaning that the application process and funds processing action is much quicker than before. Typically, these loans are used in order to bridge a gap between how much a borrower can receive from a more traditional lender and how much they actually need in order to take advantage of the opportunity at hand. Some people also use this type of loan to support their business while waiting for more traditional financial support to pull through and provide them with the cash flow they need to keep business moving forward.
Leveraging Luxury Assets Is Fast And Efficient
Fast response time is perhaps the largest advantage for those looking to leverage their luxury assets. A traditional loan from a bank or other lender can sometimes take months, so having a more immediate resource for cash is a relief for most business owners. Bridge and term lending are available.
Luxury Financing Is Not Based On Credit Ratings
Because there are no credit score or income checks while applying for this type of financial support, you can rest assured that your privacy will be uninterrupted. Your ability to qualify for the cash you’re looking for is based entirely on the value of the luxury item you’re looking to use as leverage.
No Prepayment Penalties
There are typically no prepayment fees associated with this type of loan. This means that you’re able to repay the loan amount in a timeframe that’s the most convenient for you. This way, you can pay off your debt as soon as you receive the financial support you’ve been waiting on and focus your attention elsewhere.
Leveraging luxury assets is not a new way to get capital for your business, but it is certainly less well known than other options. To gain a better understanding of luxury asset financing, contact the experts at Speritas Capital Partners today.