Suros Capital has recorded a sharp increase in demand for its short-term lending proposition, which allows businesses to raise finance against high-value luxury assets.

The lender said enquiries for its ‘loans to business’ facility have risen by 45% so far this year, with much of the interest coming from watch dealers, art galleries, fine wine merchants and property companies.

Intermediaries have welcomed the option as a quicker and more flexible funding route for small and medium-sized enterprises, the firm claimed.

Ray Palmer, director at Suros Capital, said: “We have been encouraged by the response to our proposition from businesses and their professional advisers.

“At a time when conventional bricks and mortar commercial lending has become more of a box ticking exercise, our proposition, based purely on the value of the luxury assets being offered as security, is particularly attractive to firms that want fast completions with the minimum of paperwork.”

The firm highlighted a recent example of its approach, in which a jewellery company required immediate funding to purchase additional stock. Using part of its collection of pre-owned luxury watches and newly made diamond jewellery as collateral, Suros Capital advanced a £245,000 short-term loan.

The facility, which is expected to be repaid from inventory sales within four months, was provided within 48 hours of the valuation being completed.

The company said it expects interest in its asset-backed lending model to continue growing as traditional lenders maintain tighter criteria on commercial finance.