Borro, previously known as Borro Private Finance – provider of non-bank loans using borrowers’ luxury assets as collateral – has re-entered the fine art collateral lending industry with its lowest yet loan on offer, at $25,000. Loans have fixed interest rates and are available as a standard short-term loan or a line of credit.
In February 2020, Borro became part of Luxury Asset Capital, which, according to the company, has provided over $450m in loans to over 15,000 clients.
Dewey Burke, founder and CEO of Luxury Asset Capital, said: “High minimum loan sizes were a significant impediment for many to obtain a collateral loan, so we lowered the minimums for both, our standard short-term loan and line of credit offerings to $25,000. Thus, making it possible for many more owners of fine art to help finance the acquisition of additional works of art, other luxury assets, a business, or large, unexpected personal expenses.”
As collateral from borrowers, Borro is accepting the art from the following genres: Post-War and Contemporary Art, American art, Impressionist art and Modern art. Borro’s underwriting process requires an independent appraisal and the validation of the prospective borrower’s free and clear ownership of the art, among other standard loan underwriting requirements.
Borro provides financing in amounts ranging from thousands to millions of dollars. In addition to fine art, Borro accepts luxury cars, watches, fine jewellery and diamonds and a range of auction-quality assets.