Luxury Goods Finance

People turn to luxury goods finance for a variety of reasons, although the most common of these tend to be, when:

  • You wish to raise capital without selling your luxury goods, which will continue to appreciate in the future 
  • You have a significant amount of your wealth tied up in a collection of luxury goods, but you have little other income or liquidity
  • You are looking to leverage your luxury goods collection to reinvest in other assets, to seek more lucrative, short-term returns or pay off debt

Enness is a leading broker of luxury goods finance. Enness will help you unlock liquidity using anything from wine to handbags or collectable cars or jewellery as collateral for a loan. There are an increasing number of specialist and dependable lenders in the space, and you can use the proceeds of this type of finance relatively flexibly. You can benefit from luxury goods finance if you have a high-value collection of luxury goods equal to £1 million or more.

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Luxury Goods Finance

Using Luxury Goods as Security for a Loan

Borrowing against luxury goods is complex, so this type of lending is only possible if you have significant luxury assets. You will most likely find it makes sense to borrow against a collection of luxury goods rather than a single luxury goods item. However, in some cases, if the value is high enough, you will be able to use a single item in your collection as security. Lenders will usually have just as much interest in using a £75 million Picasso as collateral for a loan as they would using a portfolio of art that is valued at the same amount, for example.        

You can, in theory, use any luxury goods as collateral. However, wine, jewellery, art, a luxury car collection, designer handbags, designer goods and high-end watches tend to be the most typical collateral. Some lenders will be happy to lend against a combination of luxury goods (i.e., jewellery and luxury cars), but they will need to be valued and appraised separately. 

How Luxury Goods Finance Works

Luxury goods finance will help you unlock capital tied up in your personal luxury goods collection. Lenders will grant you a loan, in return using your luxury assets as security. You’ll be able to use the capital you raise from this type of loan for nearly any reason. However, in most cases, you’ll usually use the proceeds of the loan to provide liquidity for a business need, to reinvest (i.e., buy other appreciating luxury goods, diversify assets, or invest in a business), or pay off business or personal debt. 

It’s important to note, you will not be able to retain possession of your luxury goods for the period of the loan. Legally, you will remain the owner, and after you have paid the loan back, your goods will be returned to you, but you will not be able to enjoy them during the loan. 

If you’d like to explore luxury goods finance, Enness’ will start by asking you about the assets you’d like to use as collateral. Your broker will also ask you about how much you would like to borrow and your timeline. 

Luxury goods finance is a very specialist area of the market. You’ll be able to find lenders yourself, but you may not get the best deals or terms if you are negotiating yourself. Additionally, you’ll want to ensure you are working with trustworthy and discreet lenders rather than into a pawnbroker-style relationship. Enness has relationships with over 500 specialist lenders, and your broker will be able to go straight to the source of the most advantageous finance from honourable, expert lenders.

Truly specialist lenders in this part of the market are relatively few and far between, but it is possible to borrow significant amounts if you have the right profile and the right luxury goods. Depending on your assets, you will be able to borrow anything from a few hundred thousand pounds up to £5 million. Enness works with clients and lenders worldwide, and your broker will be able to help you secure financing regardless of where you are based or your citizenship.

The type of luxury goods you are using as security, the value, brand or designer, provenance and amount you want to borrow will influence which lender Enness will approach on your behalf. Enness will go straight to the best sources of luxury goods finance, and your broker will be on hand to assist you with anything you need until your deal is completed. 

The higher-value and more liquid your luxury goods, the easier it will be to use them as collateral for a loan. Your lender will never want to find themselves forced to sell your goods if you were to default on loan repayments. That said, the easier it would be for them to recoup their costs by selling your luxury assets if this were to happen will serve as a benchmark of how easy it will be to borrow using your luxury goods as collateral. 

When Enness know more about what you want to borrow and your assets, they will approach specialist lenders on your behalf. Lenders will want to know more about your luxury goods and, in many cases, will request high-quality photographs of your collection and more information about ownership. They will predominantly be looking to make a first “screen” of your collection and verify if it’s the right quality and calibre for them to lend against. They will also perform some basic due diligence. If they are satisfied in the first instance, lenders will then provide an in principle offer, and your broker will help you compare and understand the differences between any of the offers you receive. When you have an offer you would like to accept, your lender will draw up a term sheet for both parties to sign. At this point, lenders will also want to appraise your goods formally.


Interest rates and costs vary significantly from lender to lender, and several factors influence what luxury goods finance will cost. Ultimately, what you pay will centre on your lender’s enthusiasm for lending, the valuation of your assets, risk, your profile, how much you wish to borrow and what luxury goods you are using as collateral. 

Enness will always make sure you are paying as little as possible for your loan. At the same time, your broker will ensure you enjoy as much flexibility as possible. For example, depending on your exit strategy, your broker may propose they negotiate terms that allow you to pay your loan off early without you being charged an early repayment penalty. 

The terms Enness negotiates for luxury goods finance will be unique to you, and there is little room to guess what you will be offered without putting forward your goods for consideration. Enness can make discreet, no-obligation enquiries with lenders on your behalf, if you wish to explore what kind of offers or financing options will be available to you through your luxury goods collection.

Appraisal of Luxury Goods

Lenders will want to assess your goods carefully. They will principally want to value your collection, but they will also want to evaluate the condition of your goods and ensure they are authentic. 

Appraisals are carried out by experts who specialise in the type of luxury goods you want to use as security. They may work directly for your lender, or your lender may appoint them as a neutral third party. If you want to use more than one type of luxury goods as security, expect that separate appraisers may be bought in to perform individual evaluations. 

The appraiser will consider:

  • The brand 
  • The model (for assets like cars, handbags, and watches)
  • When it was made
  • When you bought it 
  • If you are the first owner 
  • How rare it is
  • The provenance of ownership (especially for goods like art and jewellery). If you are not the first owner, lenders will also want to understand how you came to own it.
  • The condition
  • How you have stored it
  • Any damage or wear and tear 

How Much Can You Borrow Using Luxury Asset Finance?

Luxury asset finance is a very specialist part of the market. Lending is risky because demand and prices can fluctuate significantly, plus there is always a risk of theft and damage, so lenders always tread with caution. Usually, lenders will allow you to borrow in the range of around 50% of the total value of your luxury assets. Because of the costs associated with this type of lending, you will generally need to have a single collection of luxury assets valued at £700,000 or more. However, most lenders will prefer that you can put down security of around £1 million or the equivalent in another currency. 

Your assets will also influence what you can borrow. If you have a high-value art or wine collection, you will likely be able to borrow more than if you have a collection of Hermès handbags, for example. For jewellery, handbags and watches, you will usually be able to borrow amounts from £250,000 up to around £5 million, depending on your assets. If you wish to borrow against art, wine or cars, you may be able to borrow more, depending on the value of your collection. 

Whatever you wish to use as collateral and however much you want to borrow, Enness will be able to source the most advantageous rates and terms for you. Acting wholly in your best interests and working to see the deal through to completion quickly and smoothly, you will benefit from Enness’ experience and lender network. Transactions will move fast, and Enness will help you save both time and money with a luxury asset finance deal custom-built for you. 

Borrowing against luxury goods is complex, so this type of lending is only possible if you have significant luxury assets. You will most likely find it makes sense to borrow against a collection of luxury goods rather than a single luxury goods item. However, in some cases, if the value is high enough, you will be able to use a single item in your collection as security. Lenders will usually have just as much interest in using a £75 million Picasso as collateral for a loan as they would using a portfolio of art that is valued at the same amount, for example.

Why Enness for Brokering Luxury Goods Finance?

There is simply too much risk and too little reward for larger institutions like banks to lend against luxury goods. They also don’t have the in-house expertise needed to cater to this type of lending. 

Therefore, speciality finance is your best option for getting luxury goods finance.  These lenders are often very niche, small players and many do not publicise their services or offer direct contact routes. The only way to connect with them is via an introduction from someone already in their circle. Enness has access to all the players who provide luxury goods loans in this exceptional market. Enness will be able to source and negotiate the most attractive luxury goods finance from respected, vetted lenders who will offer you the best rates and terms. 

Contact Enness for Luxury Goods Finance

Contact Enness for Luxury Goods Finance

Working with Enness, you will benefit from a made-to-measure luxury goods finance deal. Your broker will structure your loan in a way that keeps your costs low and utilises the best elements of your background and assets to secure the most competitive deal.

Call Enness today for a no-obligation chat about luxury goods finance.

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