Looking to borrow against your collection of fine jewelry? You have come to the right place. Here at AMETA Finance Group, we specialize in luxury watch and jewelry loans, allowing our valued clients to access unprecedented liquidity in just a matter of days.
If you need capital quickly, you might be looking at traditional lending options such as personal loans through banks or even online financial institutions. For some borrowers, these options offer attractive terms. But for anyone with a less-than-perfect credit score or nontraditional income sources, bank loans can be difficult and high interest rates can prove prohibitive.
The solution? Borrowing against your existing assets, like luxury watches and fine jewelry. More likely than not, you already have incredible value tucked away in your closet; you are just not using it to its full potential.
So, how do you get your hands on a jewelry loan? Our AMETA team is going to walk you through the process of leveraging your jewelry. We will answer common questions about which jewelry is eligible, how to kickstart the loan process, and why shopping for the best interest rates makes a huge difference. We will also give you some insight into our own appraisal process, which determines how much of a loan you are offered.
Join us as we break down one of the best-kept secrets in personal finance: AMETA’s luxury watch and jewelry loans.
What Is a Jewelry Loan?
A jewelry loan is a type of collateral loan, also called a “secured loan.” To understand how these loans work, we are going to compare secured and unsecured loans.
Unsecured Loans: This is what you think of when you imagine a traditional personal loan. You walk into a bank to secure a personal loan, and the bank (or other lender) assesses your eligibility for a loan based on your credit score, proof of income statements, and other factors. Based on these factors, the lender offers you a loan with an interest rate that depends on their determination of how likely you are to repay the money. Basically, they are evaluating risk.
Secured Loans: These loans are safer for lenders, as the borrower leverages a piece of collateral that essentially acts as insurance for the lender. Should the borrower default on the loan, the lender can repossess the collateralized asset and sell it off in order to recoup their losses. Secured loans mean that the lender has a much clearer path forward to regain any money they lost if a person does not pay back what they owe. Best of all, these benefits to the lender also translate into benefits for the borrower. With secured loans, you will likely see:
- Lower interest rates
- Higher loan amounts
- Friendly repayment terms
- Faster time to funding
- No credit checks
- Fewer administrative hurdles
- And many more perks!
How Do Jewelry Loans Work?
Now, how exactly do jewelry loans fit into this picture of secured loans that we have discussed? The short answer is that jewelry can be used as collateral. You can leverage a piece of jewelry, borrowing against its appraised value. The lender that you work with will be the one to determine the value of the piece, making it essential to choose a specialized financial group that has experience in the high-end jewelry space. If you work with a more general lender, you risk your items getting appraised for less or receiving a lower LTV ratio.
AMETA Tip: LTV Ratio? What is that all about? LTV stands for loan-to-value, and this ratio represents the proportion of the item’s appraised value that you receive as your loan amount. For example, imagine that you have a diamond necklace appraised at $100,000. You are offered a loan against this necklace of $60,000. The LTV ratio is 65%.
Here at AMETA Finance Group, we offer LTV ratios between 60% and 80% of your item’s appraised value. Our competitive loan-to-value ratios help us stand out in the realm of watch and jewelry lenders. They also mean that you will see more money in your pocket when you leverage your jewelry with us!
Another key thing to remember about collateral loans is that you are not selling your jewelry. Especially if you have family heirlooms in your jewelry collection or pieces with sentimental value, collateral lending offers an opportunity to make the most of your items’ value without giving it up. After you successfully pay off your loan, you will receive your item back in pristine condition, exactly how you left it.
What Jewelry Can You Use for a Loan?
Many people also wonder if all jewelry can be used for lending purposes. Not all jewelry is created equal, of course, but most high-quality pieces are eligible for a loan. Here is a quick breakdown of the categories of jewelry we can consider here at AMETA:
- Brand-Name Jewelry: Think of brands like Tiffany & Co., Van Cleef & Arpels, Harry Winston, or Cartier. Recognizable items like the popular Van Cleef & Arpels Alhambra motif, the Tiffany & Co. bean necklace, or the Cartier LOVE bracelet are particularly appealing to lenders. If you have the original box and paperwork that goes with these pieces of jewelry, even better.
- GIA-Certified Gems: GIA (Gemological Institute of America) certification paperwork verifies that your gems are authentic and offers a portrait of quality, accounting for inclusions, clarity, flaws, or anything else a jewelry should be aware of. The GIA offers paperwork for many types of gems, including emeralds, rubies, and sapphires. They are best known for their diamond grading.
- Component-Based Appraisal: A component-based assessment involves determining the weight of the components of your piece. For instance, we might weigh an 18K gold chain and a diamond set in a necklace separately. Then, we will determine the going market rate for each of these components if the necklace were to theoretically be broken down and sold for its parts. Component-based assessments normally yield lower loan amounts than when we are working with brand-name jewelry or GIA-certified gems.
The Step-by-Step Process of Getting a Jewelry Loan
When you get a jewelry loan with AMETA Finance Group, you will enjoy a quick and seamless process that avoids the delays and hurdles you might face with a traditional banking institution. Here is our six-step breakdown once you have determined which piece or pieces of jewelry you want to borrow against.
Step 1: You will first complete a short online form to get a preliminary appraisal. We will ask for information about your jewelry, including the condition of the item(s), date of purchase, authenticity papers, photographs, and more. You want to portray your jewelry in the best light possible, so take high-quality photos and be honest about the condition.
Step 2: We will send back an estimated loan amount. If you are satisfied with the possible range we can offer you, then you can bring in your asset for the formal, in-person appraisal. You can choose to drop off your jewelry in person at our Manhattan offices, or you can mail it with a fully insured shipping label. Remember, we can offer loans of up to $5 million.
Step 3: Now comes the time for the formal appraisal. Our partnership with Avi & Co., Manhattan’s experts in elite watches and jewelry, allows us to provide accurate and fast estimates of your item’s worth. You can even combine multiple pieces of jewelry under one loan in order to maximize the loan amount available to you.
Step 4: We will send over a loan agreement, and you can sign it digitally. This makes the process even easier and faster. The agreement will state everything you need to know about the loan, including your item’s appraised cost, interest rate, repayment term, and more. Remember, we can offer you a loan of up to 80% of your jewelry’s market value.
Step 5: After signing, you will receive your loan in your bank account. We will wire the money to you in as little as 24-48 hours. Now that is what we call quick liquidity!
Step 6: You will pay back the loan over a predetermined period. We specialize in short-term loans of one to three months, but we offer loan terms up to 12 months. All the while, you can put that loan money to work to grow your overall wealth. Once the loan is paid off, you will have your jewelry back in your hands. It is seriously that easy.
Discover Financial Freedom at AMETA Finance Group
The moment that you take out a loan on your luxury watch or jewelry with our team at AMETA Finance Group, you are turning the page starting a new chapter of financial wellness and success. Our partnership with Manhattan’s elite jewelry and watch retailer Avi & Co. helps us make our appraisal process faster and more accurate than other lenders on the market.
Whether you are looking to leverage a diamond ring or borrow against a vintage Rolex, AMETA Finance Group is the place to turn for reliable and reputable collateral loans.
Reach out to our team today to kick off your asset loan journey.
