Alternative security short term lender, Suros Capital, has provided an £81,600 loan to an existing customer and SME owner secured against his luxury watch collection.
The client was seeking short term funds to cover an immediate working capital shortfall and had cleared funds in his bank on the same day that he applied, having been an existing customer.
He was able to bring his watch collection into Suros’ London office and because it had already been valued and inspected and used as security for a previous short term loan, the funds were transferred immediately before the client left Suros’ office.
Suros released £81,600 based on a valuation of the watch collection of £120,000 (68% LTV). The collection included a Rolex Daytona, a Submariner and a Patek Philippe Grand Complications. The loan will be redeemed within three to four weeks when a big contract is signed. The rate of interest is 3% pm.
Ray Palmer, director of Suros Capital, said: “This loan highlights two main advantages of using personal assets as security for short term loans. Firstly, we can lend over very short periods, but the term can be extended to suit the client.
“Secondly, once we have valued an asset or assets in the past, as in this case, the deal can literally be done within a few hours and becomes a valuable resource as security for any future loans.”