When you need an influx of cash for your next big investment, there are a few different pathways to get the liquidity you require. Maybe you are considering selling off a valuable asset, taking out a second mortgage on your home, or even just borrowing through traditional routes like a bank-sponsored personal loan. These options might give you the cash you need in the short-term, but there are long-term consequences that make these choices much less attractive.
So, what should you do if you need to get liquid quickly? Luxury watch and jewelry loans open countless doors that you may not even have realized were available to you. You will be able to access lower interest rates, more flexibility, friendly repayment terms, and so much more. Plus, you will not have to part with your treasured possessions and sell off one-of-a-kind pieces that are sentimental or invaluable.
Today, we are going to take a journey through the ins and outs of traditional lending versus new-age strategies like borrowing against watches and jewelry. We will explore all of the choices available to you when you need cash, helping you make an informed decision about which path is best for your unique needs. What are you waiting for? Let’s dive in!
What Is a Luxury Asset Loan?
Borrowing against luxury assets (think watches, jewelry, fine art, antiques, or even memorabilia) is one of the best-kept secrets of the über wealthy. Of course, there is a slight barrier to entry: In order to borrow against a vintage Rolex watch or a stunning diamond tennis bracelet, you first need to own said assets. But if you do have these exceptional pieces, or others like them, in your possession, you can leverage these holdings to enhance your financial freedom and flexibility, even growing your wealth as you do so!
An asset loan, also known as a collateral loan, is a special type of lending available to those who own high-end assets. Unlike traditional lending methods, which typically allow you to borrow based on your creditworthiness (determined through a variety of different and often controversial factors), collateral lending lets you borrow against the value of your chosen asset. Generally speaking, you will be able to receive a loan amount that is a percentage of your asset’s market value. This percentage is known as the LTV, or loan-to-value, ratio.
To better understand how asset lending works, we will take you through an example of a client journey with AMETA Finance Group, your trusted partner for luxury watch and jewelry loans.
An AMETA Story: How Andrew Made His Patek Philippe Work for Him
Andrew, a savvy private equity investor who loves collecting Patek Philippe watches, spotted an excellent opportunity to get in on the ground floor of an up-and-coming tech company. But he was in a tight spot: He had just logged a major investment in a different company, specializing in renewable energy, which had not yet generated a return. Andrew knew he would eventually recoup his investment in the energy company, but he did not want to miss out on scooping up a stake in the tech company while he waited. He needed a burst of cash, and fast!
Knowing that he had no time to waste, Andrew considered a variety of different options. He thought about selling off some stock, renting out his vacation home, and taking out a traditional bank loan. But each of these choices had major drawbacks including high interest rates, annoying credit checks, and more. Luckily, Andrew was the proud owner of a robust collection of Patek Philippe watches. He decided to look into luxury watch loans.
That is when Andrew discovered AMETA Finance Group. A luxury watch and jewelry lender based in Manhattan’s famous Diamond District, AMETA works with anyone who owns high-end watches or upscale jewelry to facilitate collateral loans with some of the best terms on the market. At AMETA, we offer loans of up to $5 million, and you can even combine multiple watches or pieces of jewelry to achieve that full amount. With a loan-to-value ratio up to 80% of your piece’s market value, you can get the cash you need in no time.
Andrew decided to borrow against two of his gorgeous Patek Philippe timepieces. First, he filled out our short online form to inquire about the value of his pieces. He submitted high-quality photos of the watches, which allowed us to get back to him ASAP with an accurate estimate that the two watches together were worth around $250,000. Satisfied with this preliminary appraisal, Andrew mailed his watches in to us through our completely insured and secure shipping system to get a final appraisal in person.
We appraised the watches and rated their market value at $267,000. With the final appraisal complete, we sent over the loan agreement to Andrew. Our loan-to-value ratio of 80% allowed us to offer him a loan of $213,600, which was more than the $200,000 he needed for his latest investment. Plus, the 4% interest rate was better than anything else he had seen in his search for quick liquidity.
Andrew signed the loan agreement digitally, and we wired him his funds in just 24 hours. Talk about fast cash! Andrew was able to happily invest in the tech company, and he started getting returns so quickly that the loan paid for itself and then some. Now, that is a happy ending.
Luxury Asset Loans vs. Traditional Bank Loans
As you can see, our process for borrowing against luxury assets is simple and accessible. Once you sign your digital loan agreement, you can receive your loan in as little as 24 to 48 hours, meaning you will not be waiting for the cash you need for too long. The quick turnaround times we offer at AMETA Finance Group are just one of the many (many) reasons that the world’s wealthiest people choose asset lending over traditional bank loans. Let’s take a closer look at the difference between these two options…
Traditional Bank Loans
With a traditional bank loan, you borrow money from a financial institution such as a bank. You will go through a series of checks and verifications, such as submitting to credit checks and providing proof of income statements (usually tax returns or pay stub). This can be challenging for those who have diverse or nontraditional income sources, and it can also take a longer time to get approved. Here are some key factors to consider:
- Interest Rates: The current average interest rate for personal loans is 12.27%, but this can go up to 36% for those with subprime credit scores.
- Credit Check: Required
- Proof of Income: Required, typically tax returns or paycheck records
- Time to Funding: Usually 2-5 business days, but delays in providing credit check or proof of income documents can slow down the process.
- Loan Amounts: Common maximum loan amount of $50,000, with higher-end personal loans typically capped at $100,000. The amount you can access is typically influenced by your credit score and income.
Luxury Watch and Jewelry Loans
Luxury watch and jewelry loans are a strong option for anyone who owns these valuable assets. With collateral lending on your upscale jewelry and timepieces, you will be able to access more cash, faster. Plus, you will not need to submit to credit checks or provide proof of income in order to get your hands on the money you need. Instead, your high-end valuables do the talking for you. Here are some key factors to consider:
- Interest Rates: At around 4%, our interest rates beat traditional lending options.
- Credit Check: Not required
- Proof of Income: Not required
- Time to Funding: As little as 24-48 hours after the loan agreement is signed
- Loan Amounts: At AMETA Finance Group, we offer luxury watch and jewelry loans up to $5 million. You can even combine multiple assets to reach this amount.
Borrow Smarter With AMETA Finance Group
When you work with our team at AMETA Finance Group to secure high-end jewelry and watch loans, you will experience unmatched service, value, and security. Our partnership with elite Manhattan luxury watch and jewelry seller Avi & Co. seals the deal, allowing us to channel decades of expertise in this unique vertical.
Here at AMETA, we lend against a variety of elite watch brands such as Rolex, Audemars Piguet, Richard Mille, Patek Philippe, F.P. Journe, and Lange & Söhne. We also lend against high-end jewelry made with precious metals and/or gemstones, including diamonds, sapphires, rubies, emeralds, and others.
Whether you are looking to get a diamond ring loan or borrow against a discontinued Audemars Piguet, AMETA is the place to turn for reliable and reputable collateral loans. Submit this short form to get a preliminary estimate of your watch or jewelry’s value, and see what doors may open for you.
