2012 - The year of personal asset lending

The year of 2012 has seen many of the UK's wealthy ditch the banks, and turn to their assets for finance - unlocking the value of personal assets ranging from fine wine and prestige cars to fine art and antiques.

borro, UK personal asset lender has seen a 122 per cent increase in funded loans for 2012, compared to the same period last year, as more and more clients seek to turn their assets back into cash without delay - and the average loan value for 2012 increased to £7,000 (up from £3,500 in 2011). In turn, the value of loans to SMEs (who make up the majority of borro's loan book) rose 41 per cent, from £17,000 to £24,000 since last year.

Spotlight on the assets

The borro vaults, beneath London's Chancery Lane, are home to a unique and eclectic mix of personal assets which are used as collateral against loans, for example:

Asset - Loan value

A collection of French porcelains £160,000
 
1 x Round brilliant cut single stone ring set (approx. five carats) £100,000
 
Rolls Royce Ghost £95,000
 
Stamp collection £81,000
 
Collection of Château d'Yquem £75,000
 
Porsche Cayenne Turbo £60,000
 
Lamborghini 400 £60,000
 
Sapphire and diamond bracelet £51,000
 
2 x Fine Gold bars £50,000
 
A platinum and Diamond wristwatch by Christopher £50,000

The largest surge in loan value borro has seen this year is a 244 per cent increase against vintage wine collections. As well as wine, borro has also seen a 22 per cent increase in the loan value of fine art over the same period.

Paul Aitken, CEO says: "2012 was the year the nation turned to alternative forms of lending despite various initiatives designed to breathe life back into the lending market, particularly for SMEs. As a result, an increasing number of people recognise they have accumulated a wealth of personal assets that can temporarily be turned back into cash in the short-term, quickly and easily. For small business owners and SMEs this is especially important when needing to realise a business opportunity that would not have otherwise been possible.

"The continuing growing demand for our service just goes to show that alternative forms of financing are becoming more mainstream."

For more information, visit borro.com.