You could free up capital from luxury assets you already own without losing ownership of that item, by partnering with a pawnbroker like Trilogy.
Asset-backed collateral loans could make sense for you if you need cash flow to support an investment, business growth, or simply deal with the unexpected chaos of day-to-day life.
Read on to find out how asset-backed loans work for luxury items.
What are asset-backed loans?
A form of pawning, an asset-backed loan is suitable for those who have wealth locked in luxury collectable items, like watches, jewellery, gold, handbags, classic cars, and fine art.
You can get instant liquidity from these items by using them as collateral against a loan. Since they’re likely to increase in value, you’ll benefit from that appreciation, as the item will be back in your hands at the end of the loan period.
Put simply, your assets are used to secure the loan.
How do asset-backed loans work for luxury items?
The process of obtaining asset-backed loans for luxury items can vary slightly between pawnbrokers, but here’s how it works at Trilogy:
- Get in touch
Contact Trilogy and tell us about the luxury asset you want to use to secure a loan. - Valuation
We provide a fair and competitive valuation, which is subject to condition. You’ll be able to loan up to 70% of the asset’s value, with loans from £5000 to £1 million available. - Asset inspection
We arrange delivery or drop-off of the item at our London location. We’ll look over it again and provide a final quote. (Note that we’re part of the National Pawnbrokers Association of the UK, so we’ll always be fair and transparent.) - Payment
We’ll keep hold of your luxury asset and store it safely (with insurance). Funds usually land in your account on the same day. - Re-payments
Loan periods are usually six months, but this can be shortened or extended if you wish. You’ll receive your item back once the interest has been paid.
Why pawn your luxury assets as collateral?
Businesses and individuals in London choose luxury asset-backed loans over more traditional financing routes for a number of reasons.
Here are a few:
✓ Instant liquidity without selling assets
✓ Flexible terms and low interest rates
✓ Leverage luxury assets to diversify wealth or invest in new opportunities
✓ Preserve asset value
✓ Discreet transactions
✓ No credit or background checks (although ID is needed)