What Is a Luxury Asset? What You Can Leverage Into LuxLoc Collateral

Cillian looked out the window, thinking about that fateful day. He was one of the thousands of employees who had been let go from one of the biggest tech companies in the world. This would have been an almost unthinkable possibility a couple of years ago. But in today’s rapidly changing global scenario, apparently “safe jobs” were no longer safe as big businesses were letting go of thousands of employees worldwide to stay afloat.

It had been almost a week, and he still hadn’t come to terms with his situation. Cillian’s partner Clara was still six months away from completing her doctoral degree, after which they planned to get married. The job loss had put the proverbial spanner in Cillian’s plans. Cillian’s first thoughts turned toward his financial condition.

He had planned to apply for a loan based on his salary, but with his job gone, that avenue was closed. While his severance pay was good, that would help him stay afloat for a couple of months at max since he had substantial payments to make. He wondered how he could raise enough money in such a short time. Was there an option? And then he heard about Vasco’s LuxLoc.

What is Luxury Asset Lending?

Simply put, luxury asset lending is a secured loan that uses a luxury asset as loan collateral. Let us understand this better.

A secured loan is a loan that is backed by collateral. The collateral is usually a valuable asset, such as a car, house, or savings account, that the lender can seize if the borrower fails to repay the loan. Secured loans generally have lower interest rates than unsecured loans because the lender has a guarantee that they can recover their money if the borrower defaults. Examples of secured loans include mortgages, auto, and personal loans that use a savings account as collateral.

Luxury asset lending is a type of loan where individuals and businesses can use their luxury assets, such as high-end watches, jewelry, art, yachts, and private jets, as collateral for a loan. The lender provides funds to the borrower in exchange for temporary asset ownership. The loan amount is based on the asset’s appraised value, and the asset is returned to the borrower once the loan is repaid. This lending offers a convenient alternative to selling luxury assets and is often used for short-term financial needs.

LuxLoc allows you to use a variety of luxury items as collateral. These include,

• luxury vehicles, exotic vehicles, and classic cars with a value of over 100k
• fine art, like paintings, prints, and sculptures
• precious metals, including gold and silver (coins, bars)
• diamonds, and other precious stones
• fine jewelry (contemporary or vintage)
• high-end watches
• yachts
• jetliners 

The most significant advantage of luxury asset lending is that to avail of a loan; you don’t have to pledge a vital asset like your home. With a luxury asset pledged as security collateral, even in the rare instance of a loan default, you only stand to lose something that is not vital to your life and can repurchase it when the time is right.

But with all the advantages of luxury asset lending, why aren’t most people unaware of this exciting opportunity to monetize their luxury items?

Luxury Assets: An Untapped Opportunity

There are several reasons why most people who hold luxury items do not know they can be monetized:

• Lack of awareness: Many individuals aren’t aware of the option to use their luxury assets as collateral for a loan, as it is not a widely advertised or commonly known financial service.
• Misconceptions: Some people may have misconceptions about luxury asset lending, such as thinking that it is only available to the ultra-wealthy or that the process is too complicated.
• Personal beliefs: Some individuals may have personal beliefs or reservations about using their luxury assets in this way, such as concerns about the safety of their assets or the stigma associated with borrowing against luxury goods.

Luxury asset lending is a specialized financial service and hasn’t been marketed as extensively as more conventional loan products. This has led to a lack of exposure and knowledge about this option. The limited awareness and misconceptions about luxury asset lending contribute to why many individuals are unaware of the option to monetize their luxury assets.

However, this type of lending is growing, with many financial service providers offering the opportunity to help monetize the inherent value of many items earlier deemed as having only a status symbol or sentimental value.

Among the many advantages of luxury asset lending, here are a few –

• Access to cash: Luxury asset lending allows individuals to easily access cash without selling their valuable assets.
• No credit check: Luxury asset lending does not typically require a credit check, making it a good option for individuals with poor credit.
• No income verification: Luxury asset lending does not typically require income verification, making it a good option for individuals who may not qualify for a traditional loan.
• Privacy: Luxury asset lending can offer more privacy than traditional forms of borrowing, as the loan is not recorded on the borrower‘s credit report.
• Preservation of assets: Luxury asset lending allows individuals to preserve their valuable assets and pass them down to future generations.
• Avoidance of market volatility: Luxury asset lending can help individuals avoid stock market volatility, as luxury assets tend to hold their value better over time.
• Flexible repayment options: Luxury asset lending can offer more flexible repayment options than traditional loans.

LuxLoc: Leveraging Your Past to Secure Your Future

LuxLoc is a luxury asset-backed short-term, revolving line of credit.

A line of credit is a loan that allows borrowers to access funds as needed, up to a predetermined limit – the credit limit based on the value of the asset. The lender sets the credit limit, and the borrower can withdraw money from the line of credit as needed, as long as they do not exceed the limit. Interest is charged only on the amount of money withdrawn and used rather than the total credit limit.

In a revolving line of credit, the borrower can make multiple withdrawals if the total amount borrowed does not exceed the credit limit. The unused portion of the credit limit becomes available again as payments are made, and the balance is reduced. This allows the borrower to have a continual source of funds instead of a one-time loan with a fixed amount.

Apart from the obvious advantages of a luxury asset-backed, revolving line of credit, LuxLoc also has some fantastic benefits, like

• No Impact on Credit Score

Since there is no requirement for reporting the loan transaction to the Credit Bureau, there is no impact on your credit score. Also, LuxLoc does not require your credit score, only the proof of ownership for the luxury item you will be pledging as collateral.

• Lowered Barrier of Entry

Starting at just $10,000, LuxLoc is available to anybody owning luxury items worth $10,000.

• Serves Individuals with all kinds of Financial Requirements.

The loan amount offered by LuxLoc starts from $20,000. While standard terms apply for up to $100,000, LuxLoc offers customized terms and even lower interest rates for higher loan volumes. 

• Quick Turnaround Times

You can access cash as fast as 48-96 hours with a highly simplified approval process.

• Better Value for Your Luxury Items

LuxLoc offers you up to 80% LTV (loan-to-value) ratio. Also, we promise that our valuation will be the best in town!    

Cillian thought of getting a car as a collateral loan. Still, he wasn’t sure if he was ready to pledge his car to the lender as it would severely hamper his mobility and put added pressure of losing the car in the rare instance of a loan default.

However, when he learned about Vasco, he started looking at the few luxury items he owned with a new perspective. He selected a couple of his high-end watches and a designer purse he had gifted Clara on her last birthday. At Vasco Assets’ offices, he got the items valued. Vasco Assets offer a free valuation of luxury items to anyone, regardless of whether they decide to avail of any of their financial products. He found that his Vacheron Constantin Overseas Dual Time watch was enough to pledge as security collateral to get LuxLoc to get the money he was hoping for.

After completing the documentation and deciding on the monthly draw amount, payment terms, and period of LuxLoc, and handing over his watch for safe keeping (assets are insured by Lloyd’s and Partners, London, England, for twice the loan amount, and are stored in secure vaults), Cillian went back home happy that his luxury watch had proved to be a valuable asset that would help him come out of his tricky financial situation. With his experience and expertise, he was sure to find work within the next couple of months.   

How Vasco’s Unique Financial Products are Suited for all Life Situations

Vasco Assets is a multinational luxury conglomerate designing unique financial products that unlock the inherent value of luxury assets. Having offered more than $115 million in short-term loans to close to 16,000 customers to date, Vasco has been helping to fulfill all kinds of financial needs – from helping small businesses power through tough times to helping make holiday plans come true, funding the education of a loved one, to helping avoid bankruptcy, to financing real estate purchases, to bolstering financial flexibility.

LuxLoc is the latest in a line of luxury asset loans that have helped individuals and small business owners get much-needed liquidity during difficult times. With flexible terms and payment conditions and the ability to pledge a wide variety of luxury assets as collateral, LuxLoc is soon becoming the go-to financial product for people who do not want financial roadblocks to becoming a dampener in their ambitious life plans.

To know more about LuxLoc, visit us at 2024 Quail Street, Newport Beach, CA 92660, call us at 949.610.7774/800.688.2994, or write to us at submissions@vascoassets.com.