Special asset finance releases capital from valuable possessions and business equipment — watches, cars, art, jewellery, machinery — without selling them. The asset secures the loan, and the process runs much like a mortgage, on a far shorter clock.
How special asset finance works
An asset, for lending purposes, is anything that can be professionally valued and lent against. On the personal side that means watches, jewellery, art, cars, motorbikes, boats, helicopters, planes and yachts. On the business side it means machinery and equipment — farming and manufacturing plant, anything a business owns for production. The lending changes shape depending on what the asset is, but in principle the finance is the same.
The mechanics mirror a mortgage more closely than most people expect. You submit an application with an approximate value of the asset — much as you would estimate a property's worth — the asset is professionally valued, and the case goes to an underwriter alongside a statement of your assets and liabilities.
Liquidity is the thread running through the whole product. A £100,000 antique can usually find a buyer quickly if it ever has to be sold; a specialised piece of farm machinery serves a niche market and cannot. The easier an asset is to sell, the more readily it values and the better the terms — which is why two assets of identical value can produce very different offers.
What qualifies — and what doesn't
Most things of genuine value can be considered, from jewellery through to very niche manufacturing equipment. The practical floor is value: below roughly £10,000 to £15,000, the costs of valuing and securing an asset outweigh the benefit, and a personal loan is usually the better tool.
The other boundary is term. This is short-term borrowing by design — typically 12 to 24 months, repayable when you choose, comparable to a bridging loan rather than a term mortgage. If you hold very high-value assets and need capital over many years, a different structure will serve you better, and we will say so.
Who it suits
On the personal side, clients use asset finance for luxury car purchases, watches and jewellery — either to fund the acquisition itself or to release capital from items they already own. The asset does not need to be extreme: bespoke car finance works for a top-of-the-range BMW as readily as for a £500,000 Rolls-Royce.
On the business side, companies borrow against existing assets — manufacturing equipment is the common example — to acquire more machinery or fund expansion. The structure is the same for both; only the underwriting emphasis shifts.
What special asset finance costs
Pricing varies with the liquidity of the asset — quoted case by case. Luxury items such as watches, jewellery and art sit at the cheaper end because the lender's exit is straightforward; machinery with a limited resale market carries more risk of a slow disposal and is priced accordingly. Lenders also charge an arrangement fee alongside the rate, and we set out the full cost of any facility line by line before you commit, so the comparison is made on total cost rather than headline figures.
The process and timescales
- Enquiry. You tell us the asset, its approximate value and what the money is for.
- Valuation. The asset is professionally appraised — quick for watches, jewellery and art, longer for specialised equipment where the market is thinner.
- Underwriting. A basic application confirming your assets and liabilities goes to the lender for assessment.
- Funding. Luxury assets can complete within five to ten days where the valuation is straightforward; more complex items such as machinery typically take around thirty days.
Advising on property finance since 2014, with access to 135+ lenders, we know which funders are comfortable with which asset classes — and where a case is better placed elsewhere.
Can special asset finance be used for both personal and business purposes?
Yes. Some clients use it personally — luxury cars, watches, jewellery — while others borrow against business assets such as manufacturing equipment to fund the next acquisition. The product works the same way in both cases.
What happens if I cannot repay the loan?
Much as with a mortgage or bridging loan, a lender will typically allow time to resolve the position provided you keep communicating, though a default or penalty rate of interest may apply in the meantime. If the loan ultimately cannot be serviced or repaid, the lender takes ownership of the asset and sells it to clear the debt — which is why the exit deserves as much thought here as on any bridge.
Can I get special asset finance with bad credit?
Yes. A stronger credit profile makes the process simpler and cheaper, but adverse credit does not rule you out — rates and terms adjust with the severity, and we will tell you early where a lender is likely to push back.
Is special asset finance suitable for long-term borrowing?
No. It is built for the short term — typically 12 to 24 months — and for very high-value assets needed as security over many years, other structures are more appropriate. We arrange those too, so the recommendation follows the need rather than the product.
How is the asset valued?
By professionals, and the ease of it depends on the depth of the resale market. Watches, jewellery and art are simple to have valued; niche manufacturing or farming equipment is harder, and a thin market can limit the valuation — which in turn affects what a lender will advance.
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Talk to an adviser
Tell us about the asset, its approximate value and what you want the money to do, and we will set out the realistic options — including whether asset finance is the right tool at all. Call 020 7126 8574 or request a call back, and we aim to reply within one working day.
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Commercial mortgages · Semi-commercial mortgages · Commercial bridging