Personal asset lender Borro has unveiled a new ‘term loan’ product in response to high from partners such as private banks and wealth managers.
Borro’s term loan enables clients to secure loans of up to £2 million over a time period of 18 to 36 months, from a rate of 9% a year and with a minimum loan value of £100,000. The launch comes in direct response to demand from Borro’s partners such as private banks, wealth managers, financial and other professional advisors, whose clients are seeking funding to service longer term opportunities.
The launch complements its existing product range, including the bridging loan (loans of up to six months) and its sale advance loan (where Borro manages the sale of luxury assets, leveraging relationships with auction houses and private sellers to maximise sales returns).
Paul Aitken, founder and CEO of Borro, said: “With the launch of our term loan, Borro takes the next step in its journey to become the one-stop-shop lending platform for clients and businesses who own, or trade in, luxury assets. Investing in tangible assets is highly desirable for many, and global lending secured by ‘arts and collectibles’ alone currently represents a £4 billion market which is expected to increase three-fold over the next five years.
“Today, demand for term loans is high, but the market is highly fragmented, and this is not core to the business of any of the current providers including family offices, hedge funds, private banks, and asset-backed lenders. Our new offering leverages our expertise and sole focus on luxury asset-backed lending, and brings the service together as part of our wider product mix. Borro’s term loan is the first of a number of product announcements to come in 2015.”