Suros Capital advances loan to assist diamond dealer
Suros Capital has advanced a short term loan of £210,000 for a diamond and jewellery dealer waiting on an outstanding payment from a retail customer.
Suros Capital arranged a meeting with the client and the firm’s jewellery appraisal team assessed a sizeable diamond, emerald and sapphire jewellery collection, part of the jeweller’s inventory.
Following the appraisal, and using its dealer inventory loan product, Suros Capital agreed to lend the dealer £210,000 against the collection valued at £300,000 which will be held in the lender’s secure vaults until the loan is redeemed.
The dealer is still able to continue to market the items for sale through their online portal and aims to reduce the loan as items are sold, or upon receiving the outstanding payment from his client, with the remaining items being returned as the loan is settled.
Charles Hodge, business development director at Suros Capital, said: “We’re seeing an increasing number of enquiries from a range of dealers in this sector, who are experiencing cashflow issues, particularly at the prestige end of the market.
“Banks seem to be reticent to support these businesses as they wait for the right customers to come along, but the beauty of asset lending is that we lend against the value in a very transparent transaction, plus there is no disruption to their business as they are able to continue to market their inventory throughout the process.
“When a potential customer wishes to view the items, this can still be quickly and easily arranged through our secure premises.”