Borro, the online platform for lending backed by luxury assets such as art, has launched a new term loan product in response to high demand from partners, including private banks, wealth managers and financial advisors. Term loans are now available for 18 to 36-month periods with monthly interest rates from 0.99%.
Founded in the UK in 2009 and launched in the US in 2012, Borro has grown rapidly as traditional lenders narrow their focus and entrepreneurs, business owners and individual clients seek funding alternatives. The company reached a milestone of $100 million in loans in slightly less than five years after its launch. It only took 16 months to reach its second $100 million for a total of $200 million – signalling rapidly accelerating demand.
Borro gives customers a way to access needed capital quickly and easily by leveraging the value of luxury assets such as fine art, antiques, jewelry, luxury watches, prestige or classic cars and other valuable items that can be used as loan collateral. With an online platform and a new mobile app, Borro makes it simple to apply for a loan, and eligible customers can have money in their bank account in less than 24 hours.
With the addition of the term loan product, clients can secure loans of up to $10 million with a minimum value of $100,000 for 18 to 36-month terms. Borro launched the new product to accommodate demand from private banks, wealth managers, financial and professional advisors whose clients – typically high net worth individuals and business owners – seek funding to service longer term opportunities.
The term loan expands the growing company’s product line, which includes Bridge Loans, with payment terms up to six months, and sale advance loans, in which Borro manages the sale of luxury assets. As an expert in luxury asset-based loans, Borro leverages its relationships with auction houses and private sellers to maximize sales returns.
“Our ultimate goal is to serve clients and partners as a one-stop shop – a single platform that allows customers to access the funding they need to reach their business or personal goals,” said Paul Aitken, founder and CEO of Borro. “There’s a huge demand for term loans, but the marketplace is highly fragmented, and luxury asset-based lending typically isn’t a core competency for the traditional players. As a luxury assets-based lending specialist, Borro can work directly with individuals or partners who serve clients with luxury assets to provide more lending options.”
The rollout of the term loan is the first of several planned product expansions from Borro in 2015. Borro investors include: Canaan Partners (Lending Club), Eden Ventures, Augmentum Capital. Borro’s board of directors includes Nigel Morris (co-founder Capital One) as Chairman, and Paul Gratton (ex-CEO Egg, First Direct.)