Borro has introduced a new service for clients who have invested in luxury handbags from luxury brands and are looking to either unlock the capital, or sell the asset.
The personal asset lender will now offer loans against handbags from French fashion houses Hermes and Chanel. Using both in-house and external third party valuers, borro will authenticate and value the handbags, and offer clients up to 60% of the market value of the bag based on its condition and age, as well as market desirability.
Borro will consider all varieties of Hermes and Chanel handbags for loans, but especially the Hermes Birkin, and the Chanel 2.55, and has already lent £75,000 against designer handbags to clients so far, with an average loan value of £2,500.
Paul Aitken, founder and CEO of borro, said: “The luxury handbag market is not only high growth, but a global market that is synonymous with our clientele. We decided to add high end handbags to our asset classes, and have seen a 600% rise in the number of handbag loans and so are responding to market conditions to match demand for loans against these assets.
“We have chosen Hermes and Chanel because these brands hold their value far better than most. They are highly desirable with rare styles of the iconic Hermes Birkin bag known to fetch well over £50,000 at auction.”
Samantha Lilley, head of valuations at borro, added: “The classic designer bag is very collectable, especially to the fashionista, and this is reflected in dedicated vintage accessories and luggage sales held by the major leading auction houses. The Hermes Birkin bag in particular is exceptionally sought after, but buyer beware – there are myriad fakes and replicas flooding the market, from the primitive to the exquisite. Provenance is imperative when purchasing so always buy from authentic dealers and respected auction houses.”
Aitken said: “All the handbags we will lend against will be checked and authenticated by an internal and external authority to make sure they are the genuine article, and if possible we will ask to see proof of purchase.”