Mortgage brokers and financial advisers may be missing valuable opportunities by failing to ask clients about their luxury assets during the fact-finding process, according to specialist lender Suros Capital.
The short-term lender, which offers finance secured against high-value personal possessions, says its latest research reveals a widespread reluctance among advisers to delve into clients’ broader asset base. In particular, many brokers focus exclusively on property and bank holdings, overlooking items such as jewellery, fine art, luxury vehicles and high-end watches.
Ray Palmer, director at Suros Capital, believes this narrow approach could be costing advisers business. He said clients often do not consider these items as sources of funding and may not realise their potential as loan collateral without prompting from an adviser.
“Clients looking for short term funding won’t immediately think about the value in the assets that they might own, such as jewellery, fine art, watches or upmarket cars for example,” Palmer said.
“It is vital to get a full picture of a client’s financial situation and that should include assets that could be used to back a loan.”
According to Palmer, the issue often stems from a discomfort around discussing what some perceive as private or sensitive matters, particularly where luxury possessions are concerned. Yet, he argues that failing to have those conversations could be detrimental to the client’s chances of securing finance quickly.
“Unfortunately many advisers do not ask. One of the main reasons is a reluctance to engage clients over what they consider as private and not part of a lending transaction,” he said. “However, I would urge advisers to rethink the importance of getting a full picture of a client’s assets. You never know when having that knowledge might make the difference between being able to obtain finance because you have made your client aware of using a luxury item as security.”
Suros Capital’s lending model allows clients to borrow against the value of personal luxury assets, often enabling fast turnaround times without the need for credit checks or extensive paperwork. The firm says its proposition is increasingly being viewed by brokers as a flexible solution for clients facing tight deadlines, complex borrowing requirements, or those temporarily unable to access traditional finance routes.
