Borro have announced a total £36m injection of investment for the new asset-backed loan scheme based on art, antiques and luxury goods that they unveiled in September.
Chief executive and founder Paul
Aitken had barely signed off the announcement of a £16m injection
of cash "to accelerate growth in the UK and US" when he was able to
announce a further £20m lending facility through lending
specialists Octopus Investments.
Octopus, who have been working with
borro for 18 months, believe there is significant growth potential
in the sector.
Octopus Investment Manager Hugh
Costello said: "borro is in a strong position to grow in the UK and
US and it is a well capitalised business. Its recent round of
equity fundraising (£16 million) is testament to the confidence its
investors have in its operational focus and loan book management.
We look forward to continuing to support the business as it enters
its next stage of development."
As reported in ATG previously, borro's
scheme advances loans against high-value items being consigned for
sale by auction or private treaty. The scheme will see loans
granted of up to 70% of the estimated sale price of assets valued
between £50,000 and £1m, such as fine art, jewellery and wine, with
the lender recouping their costs and fees once the sale has been
completed.
Borro say they will protect their
investment by managing the sale of items against which loans have
been issued.
The firm have also revealed that the
average loan provided against jewellery and gem stones, including
diamonds and sapphires, has risen 151% over the past two
years.
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