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Personal Asset Loans

Otherwise known as ‘posh pawnbrokers’, personal asset finance companies offer short-term loans secured against collateral and personal assets. Although this is far from ideal, it does mean your home or family savings are cushioned from risk.

Online provider borro, for example, offers small business owners and entrepreneurs short-term loans of up to £1,000,000. Loans are secured against assets including handbags, fine art, antiques, prestige cars, luxury watches, diamond jewellery, gold, fine wine and other high value assets.

The maximum loan-to-value is 70 per cent of the estimate of the market value of the customers’ asset and interest rates vary between a flat rate of 2.99 per cent and 6.99 per cent per month. Be aware that while these figures may sound small on a monthly basis, borrow at this rate over the longer term and costs will swiftly add up.

There are no credit checks and loans can be redeemed at any time without penalty.

Read the full article at This is Money

About the Author:

Jay wrote about luxury asset trends for Borro Private Finance