Use your luxury assets as collateral for a loan.
What is a Borro Private Finance personal loan?
Borro Private Finance offers three types of personal loans for your luxury assets.
- Sale advance loans. If your luxury goods meet a minimum amount — dictated by the type of collateral you’re supplying — you may qualify for an advance on their sale. Borro Private Finance advances you up to 60% of your item’s value and then searches for the right market, if the items aren’t currently for sale, to sell your asset. Once the items are sold, you may also need to pay Borro Private Finance a small commission.
- Term loans. Depending on the asset you use, you may be able to secure a large loan with a term of 3 to 24 months. You’ll mail your items in for appraisal, and Borro Private Finance will assess their value and return with a loan offer. The minimum amount you can borrow will depend on the asset.
- Acquisition financing. Borro Private Finance also funds the acquisition of assets for well-qualified borrowers. The exact terms and amount you can finance will vary by asset. In some cases, Borro Private Finance is even able to arrange for transport and storage of the item until you’re able to collect it.
You may not have to store your items with Borro
Borro Private Finance also has a Keep Possession program that allows your luxury assets to remain with you during the loan term. You’ll receive the same evaluation and appraisal, but you won’t have to send any items off.
To borrow through Borro Private Finance’s Keep Possession program, you’ll need to borrow at least $250,000. Terms last from 12 to 26 months, and Borro accepts a range of assets, including fine art, wine, jewelry, watches and classic cars. Your asset and ability to repay will dictate the amount you receive, but in general, Borro will finance between 40% to 65% of the asset’s value.
What types of assets does Borro Private Finance accept?
Borro considers each asset’s unique properties when it evaluates it for a loan. To be considered for a loan, you must provide proof of ownership and documentation of authenticity for each asset.
- Luxury watches. Beyond brand and model, Borro Private Finance considers the item’s age, condition, scarcity and provenance when determining its value. It will also perform market research and collect information from manufacturers, auction houses and third-party collectors to help determine value.
- Jewelry. The material, gemstones, style and period of the piece will be used to determine a piece’s value. Because each piece is unique, Borro Private Finance encourages direct inquiries for jewelry.
- Fine art. Fine art is judged by the artist, provenance and uniqueness of a piece. Borro Private Finance takes into account the supply and demand for a particular style or piece as well as market data from galleries, auction houses and private sales in order to determine value.
- Classic cars. Borro Private Finance considers year, make, model and condition — as well as market pricing — when determining a vehicle’s value. Each vehicle will be inspected in person, and you must provide service receipts and ownership history, if applicable.
Rather than separating its loans by type, Borro Private Finance instead separates its products by luxury asset.
|Loan program||Loan-to-value ratio||Loan term||Minimum amount|
|Fine art finance||40% to 50%||3 to 24 months||$100,000|
|Jewelry and watch finance||60%||3 to 24 months||$20,000|
|Classic car finance||40% to 50%||3 to 24 months||$100,000|
|Keep possession||40% to 65%||12 to 36 months||$250,000|
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What are the benefits of a Borro Private Finance personal loan?
- Quick service. Borro Private Finance usually processes applications within a few days, giving you the opportunity to use your luxury assets as collateral without much hassle.
- No credit checks. Because you’re providing a luxury good as collateral, your loan is secured. There’s little risk for the lender and no need for a credit check, which helps keep the process discreet.
- Returns any surplus from sale. If you can’t repay your loan, Borro Private Finance sells it to recover its losses. Any surplus from that sale is returned to you — a small consolation if you’ve put up an item you love.
What to watch out for
- Doesn’t accept all expensive items. Borro Private Finance doesn’t accept property, stocks, bonds, livestock, firearms or electronics.
- You’ll lose your item if you default. If you can’t afford to repay your loan, Borro Private Finance sells your item, returning any surplus your way.
- It’s still a loan. Despite dealing in luxury goods, at the end of the day, Borro Private Finance is a lender. Consider other options before you agree to its terms to make sure you’re making the best decision for you.
- You won’t get a loan amount for the full value of your item. If you can sell your luxury item yourself, you could stand to save money by receiving a good amount of cash and avoid taking out a loan altogether.
- No online transactions. While Borro previously offered online account setup and preliminary evaluation, you’ll now need to call or visit to start the borrowing process.
What does the Internet say about Borro Private Finance?
Borro Private Finance has been accredited by the Better Business Bureau (BBB) since 2014 and has an A+ rating on its website. Likewise, its rated “Excellent” on Trustpilot, but that’s based on just 16 reviews.
Previous borrowers praise Borro Private Finance’s “great, prompt service” and “easy transactions,” as well as friendly customer service — a nice perk when you’re handing over precious items. More infrequent are complaints about having to wait an excessively long time for the return of your items and even lost items. Eliminate any confusion by carefully reading the terms and conditions of your offer, and ask about anything that is unclear.
Am I eligible?
Borro Private Finance doesn’t advertise specific eligibility requirements for its loans. If you’re thinking about borrowing, the most important factor is your collateral — the luxury assets or items you’re putting up for your loan. Of course, you’ll need to be at least 18 years old or your state’s age of majority to complete a loan application.
How do I apply?
Borro keeps its process discreet, which means you won’t find much on its website. Rather than providing information upfront, you’ll need to follow its process to learn how much you can borrow and what rates you’ll be eligible for.
- Call Borro to set up an account.
- Arrange an appraisal and inspection of your luxury asset(s).
- Receive a quote and loan paperwork.
- Review your documentation to ensure the loan suits your needs.
- Agree to the loan terms and release your asset(s) for safe storage.
Borro will then transfer your loan funds to your account. While this isn’t the quickest way to apply for a loan, it does provide you with access to assistance during all stages of the appraisal and lending process.
I got the loan! Now what?
For cash advances, Borro Private Finance charges you a holding fee for your item and takes up to a 30% commission on its sale.
If Borro Private Finance offers you a loan contract and you agree with how much they’ve appraised your items for, read your loan’s contract carefully. Depending on the type of loan, you may have only three months to repay what you borrow with interest. Consider if you have enough money to cover the full cost of the loan before signing. If you fail to repay, Borro Private Finance may sell your items to recoup its losses.
If you don’t agree with how much they’ve appraised your items for or you change your mind, Borro Private Finance will return your items to you.
Did Borro change its name?
Yes. If you looked into Borro in the past or had previously done business with the company, you may have noticed that Borro changed its name to Borro Private Finance in July 2018. This is to better reflect its ability to handle secure loans for people with valuable assets.
If you have luxury assets that you know are worth a bundle, Borro Private Finance is a resource that allows you can to trade them for quick cash. It’s safe and secure, but applying can be cumbersome, and you’re offered only a generic loan before you ship your items to Borro Private Finance for an appraisal.
To find a loan that doesn’t require hocking your personal items, you could consider an unsecured loan.