Suros Capital has devised a new finance product aimed at the watch industry to help both dealers and collectors finance a range of opportunities.
The new Dealer Inventory Loan allows watch businesses to use existing inventory to raise working capital.
The luxury asset lender has already completed the first transaction of this new offering for a Hatton Garden watch dealer, a highly active operator who was looking to raise £120,000 for new stock purchases.
The client explained to Suros Capital’s business development director, Charles Hodge, that because certain brands and models of luxury watches such as Rolex and Patek Philippe’s Nautilus are currently going up in value by around 5% per month, it did not make any sense to sell stock to raise the finance required.
With the appreciation in the value of his inventory more than outweighing the cost of the loan terms offered by Suros Capital, borrowing to He has also been able to continue trading by adding more fast moving stock to his inventory.
Hodge added: “We are delighted to be able to offer watch and jewellery dealers this unique new borrowing facility and have already seen a lot of interest from dealers, who do not want to miss out on the market appreciation of particular stock items.”