Luxury Goods Finance

Luxury goods finance enables you to access capital tied up in your luxury collection. In practice, lenders offer you a loan using your assets as collateral. The funds can typically be used for almost any purpose — from meeting business liquidity needs to reinvesting in other assets or covering personal or corporate debt.

During the loan term, you remain the legal owner of your assets, but you will not be able to hold or use them until the facility is repaid in full. Once you have settled the balance, your items are returned to you.

At the outset, Enness will discuss which assets you wish to use as security, the amount you would like to borrow, and your desired timeframe. Luxury goods finance is highly specialist, and while you could approach lenders directly, you may not achieve the best terms. It is also critical to avoid pawnbroker-style lenders. Enness works exclusively with vetted, professional financiers and has direct access to more than 500 specialist lenders worldwide.

Depending on your profile and the value of your goods, it is possible to borrow from several hundred thousand dollars up to $5 million or more. The exact terms depend on the type of luxury assets you wish to leverage, their value, provenance, brand, and market liquidity.

Lenders will usually request photographs and ownership documentation of your goods as part of an initial screening process. If they are satisfied, you may receive an in-principle offer. Once you select a preferred option, a formal term sheet is drafted, and your goods will be professionally appraised before funding is released.

The cost of financing luxury goods varies significantly. Rates depend on the lender, the value of your assets, how much you want to borrow, your overall profile, and the associated risks.

Enness’ role is to minimize your borrowing costs while negotiating as much flexibility as possible. For instance, your broker may seek to arrange terms that allow you to repay early without penalties. Every package is tailored to your specific circumstances, and Enness can discreetly test the market on your behalf to identify what lenders would be willing to offer.

Before lending, your assets will be appraised by specialists. Appraisers verify authenticity, assess condition, and establish a fair market valuation. Depending on the type of assets you put forward, separate experts may be required.

The appraisal process will consider:

• Brand or designer
• Model (in the case of cars, watches, or handbags)
• Year of manufacture and purchase
• Whether you are the original owner
• Rarity and provenance
• Condition and how the items have been stored
• Any wear, damage, or restoration

This process ensures lenders are fully confident in the value and authenticity of your collection.

Luxury asset finance is a specialist lending service, and most lenders will offer loans of around 50% of the total appraised value of your assets. As a general rule, you will typically need a collection valued at $1 million or more; however, in some cases, a single item may suffice if it is of exceptionally high value.

The type of asset will influence how much you can borrow. High-value art, wine, or collectible cars often require larger facilities, while jewellery, watches, or handbags generally support borrowing from around $250,000 to $5 million.

Enness will help you navigate the market to identify the most competitive and discreet lenders, ensuring your deal is structured to move quickly and efficiently.

Mainstream banks rarely offer lending against luxury goods, as the risks are high and they often lack the in-house expertise required. Instead, this space is dominated by specialist financiers, many of whom operate discreetly and only work with clients introduced through trusted intermediaries.

Enness has direct access to these lenders and can negotiate the most advantageous terms available. With our extensive network and experience, we can ensure that your financing package is bespoke, competitive, and arranged quickly, regardless of your location or nationality.