Borro, which provides personal loans secured by luxury assets such as jewelry, antiques, fine art, or luxury or vintage automobiles, is expanding its operation to New York City from its home base in London.
Founded in 2008, Borro provides private, discreet loans from $1,000 to $1,000,000 for small business owners or wealthy individuals. Loans are available the same day on which the application is made. The property is then held by Borro in a secure location and the loan can be repaid at any time.
Borro's business has grown four-fold each year since its founding in the United Kingdom and founder Paul Aitken says he saw a need for similar services in the New York region. The majority of Borro's customers are entrepreneurs and small business owners or self-employed people looking for immediate alternative financing options in a tight credit market, Borro said.
Borro's average loan amount to customers in the U.S. is $10,000, compared with an average of $7,000 in the U.K.
"Our services are quick and discreet, and there when you need it," said Aitken. "We have no retail presence, which keeps our costs down and allows us to lend at favorable rates versus competitors."
The loan process can be completed online at www.borro.com, by visiting the New York valuation office or through an at-home appointment. Property is appraised by appraisers formerly associated with the large auction houses, according to Borro.
During the last 12 months, $25 million has been lent in the United Kingdom and the New York market is expected to reach the same level within a year, Aitken said. The firm will expand to other areas of the U.S., with California being the next destination.
"We deal with a lot of people who are involved in the arts, antiques and collectibles. Referrals come from financial advisors, CPAs and private banks that do not want to deal in smaller loans," said Aitken. "We have built a platform that allows for easy valuation and we are just as happy doing a $5,000 loan as a $500,000 one."
-Karen DeMasters