Luxury Finance

Quick financing against: luxury property, luxury movable assets (cars, jets, yachts) and luxury valuables (jewellery, watches, art and gold).

    How much would you like to borrow?


    £100 000
    £100 000 000

    1 Month
    60 Month

    £100 000
    £100 000 000

    1 Month
    60 Month
    Luxury asset finance 1

    For High-Net-Worth Individual (HNWI) / Ultra-High-Net-Worth Individuals (UHNWIs) / corporate clients / specialized funds (such as art funds) / museums / dealers and other clients globally, we offer exclusive luxury finance options against:

    • Luxury property: £20m+
    • We advise on finance for luxury property across: UK, Europe, US, Singapore, Australia, New Zealand.
    • We cater for the costs including: Finance, Purchase, Development and Refurb costs of luxury items.
    • We take full discretion measures and observe strict privacy in our client approach and our luxury finance terms are discussed on bespoke basis.

    Fine art, sculptures, Jewellery, gold, rare wine, gemstones, antique violins etc:

    Loans for luxury assets 1
    $1m-$1bn
    • Location: Clients could be anywhere in the world and take advantage of the best services.
    • Collateral policy types: gold (doré bars, bullion, golden items, nuggets etc.), jewelry (preferred for branded), luxury watches, fine art, gemstones, rare wine collection, antique violins.
    Borrow against luxury assets 1
    • Privacy: we observe the highest level of confidentiality and respect of personal data of the client given to us during the loan’s application process.
    • Flexible, rapid, and discreet lenders: our firm works with some of the most experienced, flexible, discreet, respectful and professional private lending institutions in the industry. Depending on the clients location and the type of the collateral, they could offer the most flexible solutions to meet the client’s needs.

    Super luxury vintage or new collectable cars, private jets, helicopters,yachts and other transport items

    Luxury loans 1
    $1m-$1bn
    • Location: Clients could be anywhere in the world and take advantage of our services.
    • Collateral types: Vintage/ luxury cars, yachts, private jets, etc.
    • Types of clients: HNWI / UHNWI / corporate clients.
    Prestigious asset finance 1
    • Clients could finance for new luxury, as well as pre-owned or used luxury goods and also refinance loans.
    • Privacy and confidentiality.
    • Flexible and rapid solutions.

    Examples of Luxuries Financed

    Presgious asset loans 1
    Loan size:
    £20 000 000
    Year:
    SEVERAL YEARS

    Over the years we advised on finance for luxury properties in Monaco, Marbella, London, Paris, Geneva, Tuscany etc. These included acquisition and development. We consider ultra-luxury – properties with values above £20m.

    Luxury asset finance 4
    Loan size:
    $60 000 000
    Year:
    2018

    In 2018, we helped finance the purchase of a luxury yacht for $60m-by a HNWI, and the entire process took only 3 weeks.

    Loans for luxury assets 2
    Loan size:
    $12 000 000
    Year:
    2019

    We have also financed the purchase of a new private aircraft for a family office’s private use, $12m in 2019

    Borrow against luxury assets 2
    Loan size:
    $5 000 000
    Year:
    2016

    We assisted a client in financing pre-owned artwork, consisting of modernist paintings prices at between $3m-$5m each, 4 items in total, 2016.

    Luxury loans 2
    Loan size:
    $3 000 000
    Year:
    2020

    In 2020, we assisted a client in raising $3m zero-coupon 3-year loan in order against a painting in order to finance personal investments.

    Prestigious asset finance 2
    Loan size:
    €100 000 000
    Year:
    2021

    In 2021, we assisted a client to refinance and develop a super Luxury property in Monaco valued at €100m.

    Prestigious asset finance 3
    Loan size:
    £8 300 000
    Year:
    2021

    In 2021, we assisted a client refinance a fleet of luxury cars valued at £8,3m.

    Luxury asset finance 3

    Before undertaking any transaction, we perform our KYC and AML checks on the client, luxury items, and everything else related to the transaction.

    We work with the best valuers who are reputable, custody/safe-keeping service providers, transporters, insurers, auction houses etc. and supervise all parties involved to ensure that:

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    • Transaction process proceeds as per plan.
    • Terms of agreement are adhered to.
    • The luxury collateral (art, gold, car, yacht, etc.) being financed is delivered on time (within the agreed period).
    • The luxury collateral being financed meets specifications and is in good working condition.
    • The overall duties of parties are respected by both lenders and borrowers.

    Confidence

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    Whatever could be your motivation for using a luxury item for leverage, such as the acquisition of the item, personal use, investment purposes and so on, you will need a trusted partner who could source such financing for you and assess leverage potential early on. For smart investors, collectors or dealers, items like gold, jewelry, fine art, sculptures, rare antique items, rare vintage cars, rare wines, antique violins and musical items etc., could represent unique storage of value and capital appreciation.

    Luxury loans 3

    Quite often, these items are acquired through auctions like Sotheby’s, Christie’s etc. If, for instance, the purpose of the leverage is financing the acquisition of a target item in an auction or through private dealers, before placing a bid for this item, you will be confident that you could secure financing in order to acquire this item. In a formal auction situation, the bid-to-closing time frame could also be quite short. With Ploutos, you can be confident that you have a support of an experienced team with a wide and deep reach to specialized lenders in the field you choose.

    Presgious asset loans 2

    With a long-standing reputation, experience and relations in luxury finance, Ploutos Associates comprises of the best professionals who understand the customs and intricates of the luxury finance process and works with some of the fastest moving investors in a related field who do not only help to finance the purchase or any other need but also sometimes could offer advice, guidance and assistance in all aspects related to this area of financing.

    Prestigious asset finance 4

    With a long-standing reputation, experience and relations in luxury finance, Ploutos Associates comprises of the best professionals who understand the customs and intricates of the luxury finance process and works with some of the fastest moving investors in a related field who do not only help to finance the purchase or any other need but also sometimes could offer advice, guidance and assistance in all aspects related to this area of financing.

    Please contact us to consult on financing options:

    Luxury asset finance 5

    How much does luxury finance cost?

    The costs associated with luxury finance are similar to those in the fields of auction, bridging and development financing. It majorly depends on the type of luxury item being targeted and respective finance seekers’ profiles, and the level of leverage. However, in the last few years, the costs associated with short-term finance have been dwindling. When talking about costs, we encourage the acquirer to consider the cost of money from the perspective of the total business plan of a project.

    Loans for luxury assets 4

    John Doe is entering into a deal in order to purchase a luxury antique 1961 Ferrari for $7m and is planning to keep the car and resell it at a later time as an antique or to swap the car for another higher potential car. He has a choice to:


    A

    Purchase the car for 100% of his cash if he has the purchasing power. Here, he makes an expected profit upon resale. Say he resells the car 2 years later for $9m. In this scenario, he makes $2m profit over two years with $7m invested. Over two years, he makes around 1.28x his money and 13% pa IRR.

    B

    He puts down $2m equity and borrows a further $5m at a 10% cost (although a high number and in reality it could be lower, we have taken a round number for simplicity and includes all fees and expenses etc.). In this case, after clearing the finance charges, upon the later sale of the car as an antique for $9m, he returns the borrowed capital (around $6m) and makes around $1m profit on top of his $2m invested or 1.5x his money and 21% IRR.

    As demonstrated in a simple example above, although 10% may seem like an expensive cost of money, it makes more sense to turn to such financing as it enhances the return on investment for the client.

    Our Considerations

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    Purpose

    First, we consider your purpose for borrowing the money. It could be for the investment purposes described above, emotional purposes, or simply personal use.

    Luxury loans 4

    Affordability / Credit score

    We also carefully review borrower’s income in order to ascertain an affordability of such a loan and ability to service the loan.

    We perform background financial checks and findings to ascertain your short- and long-term financial trends in a bid to determine your financial status and net worth. Sometimes, the lending institutions require the Client’s credit report to determine how financially buoyant you are and your repayment ability and whether the application for a grantor will be acceptable or not.

    Presgious asset loans 3

    Valuation

    Determining the value and liquidity of the underlying collateral or security is one of the key due to diligence items that the lenders concentrate on. Depending on the liquidity of the item, LTVs and terms are often derived. Valuation methodology also varies. Lenders usually rely on marketable liquidation value rather than full market value or insurance value.

    Prestigious asset finance 5

    Jurisdiction and custody matters

    A very important factor for the lender is determining the jurisdiction of the Client, underlying deal and location for safe keeping the collateral in the lender’s custody. These questions are often determined based on the lender’s preference.

    Advisable Process

    Luxury asset finance 6

    The area of luxury finance is very diverse, and it is difficult to ascribe any specific process because a lot will depend on the type of the client, jurisdiction, collateral, and repayment options. However, we will try to shed some light here.

    We have worked closely with all types of Clients – HNWI/UHNWIs, luxury item owners/collectors, sophisticated art/jewelry/yacht brokers, specialized private equity houses/funds, museums, family offices and also with several first-time purchasers who want to effortlessly buy and own their dream cars, pieces of jewelry and other luxury items, and approached our institution for advice on finance options as well as the overall supervision and security of the entire processes involved.

    Loans for luxury assets 5

    In order to make the process of financing your luxuries a smoother one, we duly recommend preparing for the luxury finance in advance and ensuring that you know what you want and possess a corresponding financial capacity or income stream to secure the finance for the eventual purchase of the luxury item because once financing process commences, one needs to act quickly and respect the information needs in order to honor the closing process expected from lenders.

    Borrow against luxury assets 5

    Lenders’ due diligence is different from borrowers who are borrowing in order to buy an item for personal purposes to corporate / professional purposes who are borrowing for business purposes. For instance, we have income-producing clients (such as museums) who make constant income from displaying these items. Here, the process and due diligence is different from HNWI borrowers who are buying the item for personal reasons.

    Luxury loans 5
    STEP 1

    Before venturing into finance for luxuries, it is widely recommended that you do your research and prepare your business plan thoroughly regarding the types of luxuries you are targeting or intending to target, i.e., have your personal preference already.

    Things to consider are:

    • Knowing the intended class or item of luxury itself
    • Market price of the luxury
    • Market price for new / Market price for used (relevant for super-luxury cars, private jets and yachts)
    • Liquidity of such item. Resale or swap ability feature
    • Acceptable state of the item: New/ Used (how used? 2yrs, 3yrs…)
    • Ability to maintain the luxury item for value or depreciation
    • Finally, your budget
    • Loan exit strategy
    Presgious asset loans 4
    STEP 2

    After considering all the aforementioned in the first step, then you can approach us. At this stage, our professionals are available to gather the information and provide an early assessment on potential funding options and the process and timing of events. Please note, these will be based on our preliminary review and will not be backed by real lender feedback.

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    STEP 3

    Once you know the process required for us to gather lender feedback, potential timing, the process it will take, and you decide to go ahead, you can start the application process for the funding with us. The area of luxury is diverse, and every type of collateral has different lender categories. The criteria also vary. This is why a trusted advisor is required to guide you through this process. If the financing is for participating in an auction or private purchase, we also recommend reviewing the luxury item, legal titles and information on the provenance, certification of authenticity, etc., and consult an expert valuer to provide a market estimate of such item. It is also recommended to put in place an insurance policy once the luxury item is acquired. We will gather this information and contact the lenders.

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    STEP 4

    Once a lender appetite is identified, we will start the loan execution process, and you could seal the purchase deal. As indicated above, the better prepared you are with the necessary information, the smoother the financing process for the luxury item will go.

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