The implications of the great bank crash of 2008 still reverberate around the world – while some long-standing financial institutions crumbled to the ground, others clung on for dear life. The domino effect that started in the financial sector tore through industry commerce, changing business practices forever.
While large corporations began to shed employees to survive, the prospects for traditionally-styled careers narrowed significantly. The driving force behind business found its fuel in the entrepreneur sector as the financial crash met the blossoming of the digital age, giving rise to the business world as we know it today.
The banks are still piecing themselves together, mired in ever-increasing regulation closely monitored by the Financial Standards Authority. At odds with the speed agility that’s required in today’s business place, banks are simply too slow too unreliable.
Some entrepreneurs small business owners are discovering the financial solution that works best for them is luxury asset lending. Luxury asset lenders, including central London pawnbrokers Suttons and Robertsons, are seeing strong growth in business lending year on year.
Kris Parish, Director of Suttons and Robertsons says, “As luxury asset lenders, we are well-versed in what the business borrower is looking for. They want to release funds quickly in a safe secure way that has clearly defined parameters. When borrowers come to us, we are able to sit down with them talk them through the options available to them explain the process of the loan. We build a relationship with our borrowers – akin to the traditional bank manager relationship – where we can get to know them, become familiar with their assets secure the loan that they need in the time frame that they need it”.
Watches as Luxury Assets
Rather than approach banks or building societies for loans, savvy entrepreneurs are increasingly turning to luxury asset lenders to avoid bureaucracy meet tight deadlines. Unlike traditional financial lending, luxury asset lending works by securing a loan against one set item – e.g. a classic timepiece such as a Breitling, Rolex or Cartier watch.
With such watches securing loans of many thousands, the borrower is able to ringfence the risk in order to secure funding. The pawnbroking process is overseen by the Financial Conduct Authority, which ensures that both the borrower lender are protected appropriately.
The lender must make an appropriate transparent valuation of the item – for example, a Patek Philippe Nautilus watch – it’s key that the lender is accurate. If the loan cannot be repaid the pawnbroker does have to sell the piece, the borrower is also protected – as much as they can be in this circumstance. When the piece is sold by the lender, the lender takes back the price of the loan, the interest the sale fee. Any excess profit that is left over after this point is paid back to the borrower, with the lender under obligation to demonstrate that they sold the item for a fair price.
Unlike a bank which will require three months of employment, payslips, good credit history much more, all you need to get a fast cash loan from a London pawnbroker like Suttons and Robertsons is something of value to lend against.