Turn Your Personal Assets Into Loans for Your Business

personal assets into loans

A traditional bank loan is not the only funding option for your business. If there’s a reason bank loans don’t make sense for financing your venture, here’s an alternative that may not have occurred to you.

If you have assets like high-end jewelry, art, or classic cars, there’s an option to turn any of these into what’s called a personal asset loan. Supporters of the idea say it can be quicker and easier than a bank loan, even if you qualify to go the more traditional route.

Luxlend.com is a provider of personal asset loans. A personal asset loan to borrow against certain high-end assets for business or even personal loans and avoid some of the hassles connected with traditional bank lending.


According to Luxlend Director Paul Greco, these loans often only take a few days to set up. And that’s one obvious advantage over a traditional bank loan. The one exception is high-end art, which takes a little longer to appraise. In a phone interview with Small Business Trends, Greco explained:

“When you go to the bank looking for a loan, it’s probably not happening. And if it does happen it’s probably going to take three to four months. We offer an option that’s much quicker and cheaper.”

Greco said that the service is primarily targeted at people starting or running small to medium sized businesses. But these asset loans don’t require a business plan or even credit, background or employment checks, another reason some might prefer them over a more traditional lending model.

personal assets into loans

For all these reason, it’s much easier to get a personal asset loan than a traditional business loan, provided you own an asset of sufficient value to cover the money being borrowed.

And there are even more advantages depending on a borrowers situation, Greco claims. He says some people choose the personal asset loan to avoid paying interest or removing their own money from accounts where it’s working for them.

According to the company’s website, the typical value of these loans is between 50% and 80% of the appraised resale value of the asset. Greco says Luxlend works closely with reputable appraisers and affiliates such as Sutheby’s and Christies to get the necessary appraisals needed for the loans.

Here’s how a basic personal asset loan works. Once an item is appraised and each party agrees to the terms of the loan, the lender takes possession of the asset. The borrower then receives the loan — immediately. Upon completion of the loan, the lender returns the asset to the borrower.

Since becoming involved in personal asset lending in 2012, Greco says he’s seen some interesting assets. He’s worked with people who own yachts, planes, and even the work of famous artists. He’s also worked with interesting clients, including plenty of professional athletes, he says.

personal assets into loans

Typically, Luxlend doesn’t lend on items worth less than $10,000, so it’s not an option for everyone. There are alo obvious risks since you are essentially putting up valuable personal  assets to guarantee the loan.

But for those who do have some high-end assets, it could be an appealing option, or even the only option given the current state of the banking industry.


Annie Pilon Annie Pilon is a Senior Staff Writer for Small Business Trends, covering entrepreneur profiles, interviews, feature stories, community news and in-depth, expert-based guides. When she’s not writing she can be found exploring all that her home state of Michigan has to offer.

4 Reactions
  1. It’s a great way to get a loan but then as you said, it is limited for people with high end assets. $10,000 is not a small amount for an asset so I guess this will be open to only a few selected people.

  2. Indeed, this is a good alternative to traditional business loans as far as regular cash flow for a small business is concerned. However, this option is not that every business owner can take since it involves possession of highly valued assets. Lending options for small business is still scarce.

  3. This is indeed a great way to get loans, but I also consider online payday loans to be really useful to get instant money.