Challenging circumstances can arise unexpectedly, causing a significant shift for the worse. During such times, it is wise to assess our assets and strategically utilize them to navigate through difficulties. Through luxury jewelry loans in Delaware, you can now secure finances against the valuable jewelry pieces you possess. It provides the much-needed liquidity to save your business, explore new business opportunities, expand, diversify, or simply have enough cash to weather challenging periods in life.
Want to learn more about luxury jewelry lending? Continue reading!
What Are the Advantages of Luxury Jewelry Lending?
Luxury jewelry lending refers to the practice of borrowing money against valuable jewelry. In essence, it involves obtaining short-term loans where your valuable jewelry acts as collateral. Usually, banks utilize the assets being acquired as collateral when making a car or house purchase. The asset you were attempting to purchase may be taken by the bank in the worst-case situation when you are unable to repay the asset loan.
A piece of jewelry is what you put up as collateral when you lend money on luxury jewelry. In the past, you might have faced criticism from others in your social circle if you thought about selling expensive jewelry or turning to luxury jewelry loans as a means of raising money. This might have been seen as a desperate move.
However, the financial markets have developed to the point where new financial products are designed to take advantage of the intrinsic worth of different assets, including high-end jewelry. People from all walks of life are trying to optimize their financial prospects by extracting value from high-end possessions, jewels being the most popular example.
Selling Your Jewelry Vs. Luxury Jewelry Loan: What to Choose?
Deciding between selling your jewelry and considering luxury jewelry loans in Delaware hinges on your financial circumstances. If you require immediate cash, harbor reservations about repaying a loan, and possess jewelry that you can readily part with, selling the jewelry outright would be the preferable choice.
Conversely, if you are a small business owner aiming to obtain funds for expansion or enhance cash flow, own a luxury asset that can act as collateral, and are confident in your ability to repay the loan through meticulous financial planning, then luxury jewelry lending is the appropriate choice for you.
What if You Have to Dispose of Your Jewelry?
If you are contemplating the sale of valuable jewelry or antique silverware you’re willing to part with, you have the option to approach either a consignment jeweler or a luxury asset buyer. Distinctly, with consignment jewelry sales, payment is typically received post-sale, and you may receive around 50 to 60 percent of the total jewelry value after commissions.
With a luxury asset buyer, you showcase the jewelry, and they assess a fair value through their broad network of fine jewelry appraisers. If the valuation aligns with your expectations, you complete selling expensive jewelry, and you receive the funds promptly.
Final Words
When opting for the traditional bank route, credit checks are inevitable. The more banks you approach for jewelry lending, the greater the number of credit checks – all of which get recorded in your credit history and can adversely affect your credit score. Should the bank identify a potential risk in your loan repayment capacity, it might considerably affect your credit ratings, creating hurdles in obtaining future loans. In contrast, luxury asset lenders usually dispense with credit checks, relying on the value of the luxury asset to grant loans. This entire transaction, though entirely secure, leaves no financial footprints.
To avail of luxury jewelry loans in Delaware, contact Whitten’s Fine Jewelry!
