News Posts

Art Secured Financing: What You Need to Know

Ashley Lockwood, UK Business Development Manager for lender Borro, agrees, adding that demand for art-secured lending is increasing. “As the value and frequency of art transactions increases, so does the need for alternative financing solutions that enable clients to seize opportunities,” he says.

“Much like a property portfolio, an art portfolio can be utilized to raise liquidity in a number of scenarios. Clients are becoming increasingly savvy in the way that they approach lending and art has become more of a legitimate asset class.”

In this changing landscape, more lenders are emerging outside the traditional option of banks. Borro is one such example. It’s a specialized finance firm that provides loans secured against Fine Art, Classic Cars, Watches and Jewellery. Borro can leverage various asset classes within the same loan, to get the client where they need to be.

“This sets us apart from other art financiers on the market,” says Lockwood. “Our primary goal is to provide high-net worth individuals with a source of non-bank finance, allowing clients to raise liquidity with speed, privacy and impeccable service.”

Borro’s clients usually look to leverage artworks to raise funds to take advantage of a business opportunity, invest in real estate, relieve tax burdens and legal fees – or they simply want to raise capital for the purchase of another work at auction.

“Due to the simplicity and speed we offer, we are often the quickest and most efficient way to raise capital,” says Lockwood.

Borro will generally lend up to 50% of the value of the work. Its ability to lend is determined by a number of factors including provenance, estimated market value and risk associated with the work in question.

Works are stored in Borro’s storage facility for the duration of the loan. “Our logistics, storage and insurance are all industry recognised and can meet the standards set by our clients,” says Lockwood.

Read the original article at Happening.

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Borro Can Help Raise Capital on Your Luxury Assets for Contingent Financial Planning

The age-old parlance “money talks, wealth whispers” applies more than ever before in today’s fragile economic state. Surely, people who are privileged enough to have true wealth don’t need to flaunt it, but they do need to protect it.

Luxury assets like fine art, classic cars, jewelry and antiques are always good investments in the long run, as sometimes, in life, necessities arise and misfortune can happen to the best of us. Borro is an online, secured lender dedicated to providing expedited loans held against personal valuables to meet the borrower’s requirements.

With roots firmly planted in the UK, Borro was launched in 2008 to great success, and by 2012 it had opened up offices in New York City. In the last decade, they have written over $407M of funded loans, experiencing exponential growth. RewardExpert was able to speak with Shelley Sullivan, VP of Business Relationships at Borro, about how the fintech has given banks and auction houses a run for their money.

Lending Against Luxury

Nowadays, due to economic uncertainties, there has been an increasing demand for acquiring means in a more accelerated fashion—those fiscal needs are swiftly met with Borro’s consummate loan services. Moreover, a desire to liquidate belongings has steadily waned, and most people don’t have the time or inclination for trifling with banks to necessitate a reciprocal exchange. “The need for lending against luxury is becoming more and more of a recognized method of raising capital quickly,” stated Sullivan. “Our client’s needs may differ in a weak economy versus a strong economy, but fundamentally specialized finance firms, such as Borro, exist in that space not quite covered by private banks (too slow) or auction houses (you have to sell). That ‘need’ isn’t going away.”

Borro has the capability of closing a loan in 7 to 10 days with utter discretion, speed and the foremost professionalism. They also have numerous other advantages over working with traditional institutions: no meddlesome credit checks and the wherewithal to lend between $20K and $5M against unique classes of effects, such as classic cars and fine art, as well as jewelry and watches.

Read the full article at www.rewardexpert.com

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Stop dreaming and start buying with a little help from Borro

Tired of just dreaming about adding the classic and collectable cars in the Classic Driver Market to your garage? Borro offers a loaning opportunity that might make your dreams a reality. We spoke to the company’s executive vice-president and managing director of global originations, Claire Hillier.

How long has Borro been offering classic car and supercar finance?

We launched back in 2008, but we didn’t offer car loans for almost a year afterwards. Once we were established and comfortable with the market, we began lending and have been ever since. How has the market, in terms of lending for collectable cars, changed in that time?

Around 2012, we were mostly writing car loans below 100,000 US dollars, but as the years have gone by, we’ve been seeing far more people lending against cars while they wait for their value to appreciate.

In light of recent market adjustments, have you seen an impact on financing?

The crazy figures we all saw in Monterey in 2014 was the peak, but we’ve not seen a material change in the value of our loans or the number of people coming to us since then. Those people who are, say, in the industry and have taken advantage of slight market dips and discovered a bargain are often taking finance out with us to mediate the risk in the time it takes for the car to appreciate further.

Is loaning against your car more common in the classic car world now?

It’s become far more of a normal thing to do now — some collectors used to consider lending against their cars as taboo, but as they’ve started to be viewed more as tangible assets, people have realised that it’s a smart way of securing a loan. If you’re sitting with a multi-million-pound collection and see a great car come up at auction, for example, it’s a great way to leverage against your existing appreciating assets in order to acquire more. When we lend against a vehicle, we’re looking for universal demand. We have a responsibility to sell the car for the highest price possible in a short timeframe, should the loan default, so we find that most loans are actioned against solid and dependable brands and models.

Read the full article at ClassicDriver.com

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Understanding the World of Luxury Asset-Backed Lending, with Claire Hillier

Borro’s Claire Hillier was interviewed on the Power of the Purse Podcast about luxury-asset backed lending and her background in financial services.

Listen to the podcast

Read the full article at powerofthepursepodcast.com

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Investment firm helps restructure online loan provider Borro

Under the new deal, VPC Speciality Lending will own around 49% of Borro and the remaining 51% of the equity will be held by other vehicles managed by Victory Park Capital and Borro’s senior management team.

VPC will provide Borro with a credit facility of up to $10m. VPC first became involved with Borro when it provided a credit facility in February 2014.

Borro, founded by Aitken in 2009, loans between £5000-5m against the value of luxury items including fine art, jewellery, watches, fine wine, and classic cars.

As part of the new investment, VPC partners Tom Welch and Gordon Watson have joined Borro’s board of directors. Earlier this year John Allbrook joined as executive chairman and CEO.

“Fragmented and niche market”

Allbrook said: “Despite several business and leadership shifts over the past two years, we feel confident that with VPC’s partnership, we can capitalise on what remains a fragmented and niche market that continues to be underserved.”

The financial restructuring required change of control approval from the Financial Conduct Authority (FCA) earlier this month and has now completed. As part of the restructuring a subsidiary, Borro Group Holdings, was placed into administration and PwC was appointed administrator. However Borro’s trading companies and assets remain solvent and are not effected by this move.

See the original article at antiquestradegazette.com

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Borro Makes Top 20 of SME Export Track 100

Luxury asset and property lender Borro has been ranked 20th on the Sunday Times Heathrow SME Export Track 100.

The Export Track 100 ranks Britain’s SMEs by their international sales growth over their last two financial years. Borro maintains offices in New York and Los Angeles, allowing it to service clients and their advisors across the United States in addition to its UK base. Clients leverage assets such as fine art, classic cars, luxury watches, fine wine, and properties, for loans from £5,000 – £5,000,000.

Since launching in the US in 2012, Borro has experienced rapid expansion both home and abroad.

“It was incredible taking a new business to America,” said Paul Aitken, CEO and founder of Borro, “Our innovative approach to lending means that no matter where we are, or the assets our clients use, the experience is always the same: fast and with a level of service you can’t find anywhere else.”

Borro expects its growth in both the UK and the US to continue and is “looking forward to an exciting 2016”.

Read the original article on Specialist Finance Introducer

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Borro helped Star Wars designer battle George Lucas

Borro funded original Star Wars industrial designer Andrew Ainsworth as he fought director George Lucas in court for distribution rights.

Ainsworth needed £100,000 to pay for legal fees as he wrestled for the right to sell Stormtrooper sets of armour in the UK using the mould he created in 1976.

Borro raised the funds against the moulds in a matter of days after another property lender was unable to help.

Ainsworth won the case but was left in financial difficulty after putting all he had into legal costs.

Borro came to an agreement that allowed him to access the moulds for 48 hour periods to enable him to continue production and continue building up his business and he has now paid back the loan in full.

He currently ships around 4,000 items a year around the world at a cost of £600-1,700 per asset using the moulds.

Claire Barrington-Jones, group sales director, said: “Our unique ability to leverage against a number of different asset classes that can be sold at auction, house as well as property means we can look at things many other lenders would have to turn away.

“This particular item was challenging to value but we utilised our relationships with leading auction houses and were able to assist the client in raising his funds quickly.

“Our business is built on creating lending facilities that are flexible and give the client the best chance of repayment, we specialise in combining luxury assets with property lending to get clients the figures they need to make things happen.

“It’s wonderful to see Andrew’s business is successful and we played a small part in helping him achieve this when more traditional forms of lending were not an option.”

Read the full article at Mortgage Introducer

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