16th December 2013
Despite a rebound in the fortunes of the UK economy it seems many Britons are still short on cash, even those more used to the finer things in life writes Philip Scott.
High-end pawnbroker Borro, which deals in fine art, antiques, prestige cars, luxury watches and jewellery, has now branched out into the handbag market, specifically those of the Hermès and Chanel variety.
Following a surge in client demand, the group now has £75,000 worth of lending on its books with handbags being used as collateral, where the typical loan totals £2,500.
According to Borro, the classic designer bag is very collectable and this is reflected in dedicated vintage accessories and luggage sales held by the major leading auction houses.
Paul Aitken, founder and CEO of borro, says: “The luxury handbag market is not only high growth but a global market that is synonymous with our clientele.
“We decided to add high end handbags to our asset classes, and have seen a 600% rise in the number of handbag loans and so are responding to market conditions to match demand for loans against these assets.
“We have chosen Hermès and Chanel because these brands hold their value far better than most. They are highly desirable with rare styles of the iconic Hermès Birkin bag known to fetch well over £50,000 at auction.”
Using both its in-house valuation team, as well as external third party valuers, borro will authenticate and value the handbags from the French fashion houses, and offer clients up to 60% of the market value of the bag based on its condition and age, as well as market desirability. It will consider all varieties of Hermès and Chanel handbags for loans, but especially the famous and notoriously expensive Hermès Birkin, and Chanel 2.55.