The rise of luxury asset finance in the UK has opened new avenues for securing finance, making it faster and easier to unlock the liquidity of movable assets – without having to sell them.

In this article, we explore luxury asset finance in more detail, including why it’s becoming so popular and what the benefits are:

·         what is luxury asset finance?

·         drivers of luxury asset finance popularity

·         growth of asset finance in the UK and globally

·         what’s unique about luxury assets as investments

·         luxury asset finance benefits.

What is luxury asset finance?

Luxury asset finance is a specialised form of asset finance. It involves using existing assets to secure funding. These assets are personally owned items of high value.

Luxury assets that can be used for asset finance range from cars and yachts to fine art and jewellery.

What’s driving the popularity of luxury asset finance?

Despite being around for centuries, luxury asset finance is often seen as a niche type of funding that few people understand. 

More recently, luxury asset finance has grown in popularity as a simpler and more discreet way to secure funding. 

The following factors are among those driving the popularity of luxury asset finance. 

Greater recognition of the value of “passion investments”

From sports cars to high-end fashion items, luxury movable assets have proved their worth as financial assets.

Over recent years, Birkin handbags have famously outperformed gold. And nobody snickers any more at the concept of selling a pair of high-end sneakers, some of which go for millions of dollars.

Also, after countless bank scandals and failures, sayings like “safe as the bank” don’t have quite the same ring. High-street banks aren’t the highly trusted institutions they once were.

With people across the socio-economic spectrum losing faith in traditional channels of power and wealth, there’s more interest in alternative types of investments. These include so-called passion investments, such as fine art.

There’s also more openness to different types of finance – including loans against luxury movable assets.

Even “glitz” has changed its status. Not so long ago, flashy sports car or yacht purchases might have been associated most with men’s mid-life crises. Today, the dominant image is more likely to be of a rap star or a young, “up and coming” business mogul.

Online options that are convenient, fast and discreet

The internet has made it faster, easier and safer to access luxury asset finance.

Today it’s possible to go online, find and contact reputable financial service providers, describe an asset you own and get a loan offer almost immediately.

Payment happens electronically, via EFT, and is completely above board and transparent.

Changes in attitude surrounding the pawning of assets

The days of shady pawnshops or clandestine meetings are over, at least in relation to high-value pawn transactions. And pawning assets has lost its associations with Victorian-era desperation.

The prevailing modern attitude towards money is pragmatic. Most people don’t have time for out-dated pretensions. Instead there’s respect for doing whatever is the most financially savvy to meet your goals.

At the same time that attitudes have shifted, modern pawn services have become more regulated and respected.

Businesses that offer pawn loans (or asset-based loans) are registered financial service providers and subject to the same level of regulation as other lenders, from banks to credit unions. They routinely handle high-value transactions.

Growth in asset finance worldwide and in the UK

The popularity of asset finance has grown massively over the past 15 years, in the UK and worldwide.

 Private asset-based finance (ABF) was 67% greater in 2022 than 2006.

 According to this KKR article, the ABF market is expected to grow by about US$5.2 to 7.7 trillion by 2027.

 “The impressive speed at which private asset-based finance (ABF) has expanded… is a sign of an ongoing structural shift that we think will continue to drive strong growth.”

What’s unique about luxury assets as investments?

Luxury assets as investments extend beyond gold bullion and vintage cars. Luxury items including watches, handbags and even sneakers can form part of a highly diversified investment portfolio.

 Luxury items have the benefit of being able to enjoy them while holding them as investments.

 They’re also sources of wealth outside of institutional investments in the traditional banking and finance sectors. They act as a useful hedge against volatility in the markets.

 Physical assets can be passed easily to future generations, unlike shares and property, which are often tied up after death.

 Physical luxury assets can be sold quickly or used as collateral for funding at short notice.

Why consider luxury asset finance with Lamna?

We offer fast and discreet funding against a range of luxury assets, from vehicles to watches. Access the value of your luxury investments through asset-based finance in the UK.

 With Lamna, you can expect: 

·         funding within 24 hours

·         no effect on your credit history

·         100% transparent application process & terms

·         no hidden fees or early settlement penalties.

 For more information about luxury asset finance in the UK, contact us on 0330 341 1707 or simply complete and submit our online application form.