How LuxLoc Helped A Torrance, CA Business Owner Power Through Tough Times
These are extraordinary times we are living in. The world was barely coming to terms with a new paradigm post the Covid pandemic that we saw unprecedented geopolitical situations unfold that have severely disrupted supply chains. All of this has had a dramatic impact on the U.S. economy forcing thousands of small businesses out while leaving thousands others in dire straits.
Joe was one of the unfortunate few to bear the brunt of the worst slump in the last many decades in the manufacturing sector owing to disruptions in global supply chains. As a small manufacturer based out of Torrance, CA, his company is one of the many small vendors supplying parts to some big names in the automobile and engineering sectors in the city and beyond.
What Joe was not prepared for was a double whammy that left him completely blindsided – the slump in demand and frivolous litigation from a contentious issue that had been hounding him for a long time. He had not expected this to hit him when his business was going through its worst phase. He was fighting battles on two fronts and it was draining his already worsening cash reserves.
Joe tried to look at his options. He had already reached the end of the credit line with his bank, maxed out his credit cards and his bank wouldn’t let him borrow more. He had dug deeper into his savings account and there wasn’t much there either. He wondered if there was a way to help him get hold of a line of credit that would pull him out of this tricky situation. And then as good luck would have it, he found out about Vasco’s LuxLoc.
LuxLoc: An Innovative Financial Product for Individuals and Business Owners
LuxLoc is a truly innovative financial product from Vasco Assets. As a multinational conglomerate that deals in luxury assets, Vasco Assets is known to help unlock the tremendous potential held by these items, which were previously thought of having only emotional value.
Through the years, Vasco has developed a wide range of financial products around luxury assets, like short-term loans and the ability to sell them outright at the best possible rate. And LuxLoc follows the same principle – unlock the value of luxury assets to help bolster financial stability in times of need.
LuxLoc combines the best of both worlds – a line of credit and the safety of a secured loan. As a line of credit, you can draw as much money you need from the credit limit and pay interest on only the amount you have withdrawn. The fact that you have put up your luxury asset as collateral gives you the benefit of lower rates of interest since the risk of the lender is mitigated by the value of the luxury asset.
How Vasco is Helping Unlock the Value in your Luxury Assets
Many of us often own luxury items – items that, we believe, do not hold any significant worth apart from having an emotional value. Most of us own fine and designer jewelry, diamonds, precious stones and metals, and luxury watches that we inherited or bought for ourselves. Many of these luxury items aren’t even considered “assets” by people.
But we fail to realize that we can leverage the inherent value of many of these luxury items that also include yachts, jetliners, real estate, sculptures and other pieces of art, and many more.
Vasco Assets is a leader in helping people leverage the value of their luxury items. By helping them use these assets as collateral, they offer individuals and small businesses the ability to quickly raise funds for their needs – whether it is for taking that long pending vacation, to take care of unexpected expenses, for home improvement, to expand or diversify their business or to bolster their cash flow.
The many Benefits of LuxLoc
LuxLoc has been developed as a secured line of credit to offer a continual source of funds with your luxury asset as collateral. Some of the features of LuxLoc that you should consider are –
Continuous Access to Money
Since LuxLoc is a line of credit, you can keep drawing as much money as you wish at intervals (till your credit limit) and only pay interest on the amount you have drawn. This is unlike a traditional loan where you get a lump sum (like a home equity loan) and have to pay interest on the entire amount.
Lower Rate of Interest
Since LuxLoc is a secured line of interest, the loan is backed by collateral. And since the risk of the lender is reduced, you are able to get lower interest rates than unsecured lines of credit that have higher interest rates.
To secure a personal loan which is a type of unsecured loan, the lender will check your credit history. Your credit score usually needs to be between 610 to 640. In many cases, traditional financial institutions have been seen to deny loans to individuals even with a good credit score if they see a higher debt-to-income ratio (major chunk of the income is going to pay for the debt) or if the person is between jobs. The due diligence carried out by a traditional lender takes a long time and defeats the purpose of getting a loan to tide over financial uncertainty. However, at Vasco Assets, we understand the importance of time when it comes to financial difficulties. To ensure that you can walk away with funds in as less time as possible, we have simplified the entire process of approvals. Also, because you are putting up an asset as collateral, we do not require your credit history.
Credit Limit is Correlated to Asset Value
In a secured line of credit, the maximum amount you can draw is called the credit limit which is tied to the value of the collateral. And at Vasco, we ensure that you always get top dollar for your assets. This means that you will get more from your asset than anywhere else.
No Hidden Fees
When you are getting a traditional loan, you may have to shell out a lot of extra money for fees – processing fees, origination fees, transaction fees, account closing fees, annual fees, and so on. At Vasco Assets, we tell you everything upfront as we dislike surprises as much as you do. We share all the details of the fees and actually charge only a small maintenance fee upfront.
Lowered Barrier for Entry
With LuxLoc, we have lowered the entry barrier considerably. Current secured lines of credit are designed for high-net-worth individuals and large business owners as you need high-value assets to be put up as collateral, like real estate, or equipment. However, with LuxLoc, the lines of credit start at $20,000. Most of us already own luxury items like watches, jewelry, etc, that are worth upwards of $20,000. These can be leveraged to act as security collateral to avail of LuxLoc.
Risk Limited to Losing Something You Can Live Without
An option that most homeowners had was a home equity line of credit or a HELOC. But in this case, you are risking a vital asset – your home. In the case of a luxury item-backed line of credit, even if you default on your loan, all you risk is losing the luxury item – something you can live without.
Joe was overjoyed when he heard about LuxLoc. Just a couple of years ago, when things were going right with his business, he bought some fine jewelry for his wife and a couple of expensive watches. And as an art collector, he was also the proud owner of a few works by Edward Ruscha and Clyfford Still, American artists he admired.
He never thought these luxury items that would either grace the walls or mantelpieces of his living room and office, or he or his wife would wear only on a special occasion, could help him solve his cash crunch issue. And in the worst-case scenario, he could afford to lose them. He was now ready to get LuxLoc.
Getting LuxLoc to Stabilize your Finances
Once you have earmarked the luxury items you wish to put up as collateral, you can simply call us or visit our offices. We start off by explaining the finer details of LuxLoc and then proceed with valuating your luxury asset. This valuation is completely free of charge and even though you decide not to avail any of our services, you still go back with valuable insights about your luxury items.
Once we arrive at a valuation for your luxury items, we will give you a credit limit, which is the highest loan amount you can draw during the draw period of LuxLoc. Once you agree to the repayment terms and conditions, and interest rates we proceed with documentation. Once the documentation is done, which does not take much time, you are free to draw an amount that you require.
Joe got his Edward Ruscha valuated by our experts. He was happy and pleasantly surprised at the credit limit that we offered him. After completing the documentation, he started by drawing the amount from his revolving line of credit to meet his working capital needs. He was sure that with this line of credit, he could easily tide over his current financial difficulties. He had already started planning the diversification strategy for his business.