Suros Capital has completed a £65,000 short-term loan secured against a collection of Hermès Birkin handbags enabling an SME owner to meet an imminent tax deadline.
The borrower, whose business specialises in reselling luxury handbags, had underestimated the amount of tax due and did not have sufficient reserves available to cover the bill.
With the 31 July deadline approaching, there was insufficient time to arrange a conventional business loan or overdraft.
Following a referral from the client’s financial adviser, Suros Capital valued the handbag collection and released the required funds within 24 hours.
The lender said the case demonstrated how luxury assets can provide an alternative source of short-term liquidity for business owners facing an unexpected financial obligation.
LUXURY ASSETS
Ray Palmer, director at Suros Capital, says: “Like this client, in our experience many people are caught out by underestimating their tax liability and then struggle to make up the difference. Fortunately, our client was referred to us by their adviser because they had luxury assets that could be used as security for our short-term loan.
“We would suggest that more advisers make sure that when they are fact-finding, they find out about all of a client’s assets, not just savings and bricks and mortar assets.
“For clients faced with a sudden tax call, Suros Capital with its unique offering could be the only choice left for those who don’t want to incur penalties from HMRC for late payments.”
