Suros Capital launches watch dealer inventory loan product

23 June 2021

Luxury asset lender, Suros Capital, has created a new finance product specifically for the watch industry to help both dealers and collectors finance a range of opportunities.

The new Dealer Inventory Loan allows watch businesses to use existing inventory to raise working capital. It is believed to be first product of its kind to be offered within the industry.

Suros has already completed the first transaction of this new offering for a Hatton Garden watch dealer, a highly active operator in this fast moving market, who was looking to raise £120,000 for new stock purchases.

The client explained to Suros Capital’s Business Development Director, Charles Hodge, that because certain brands and models of luxury watches such as Rolex and Patek Philippe’s Nautilus are currently going up in value by around 5% per month, it did not make any sense to sell stock to raise the finance required.

With the appreciation in the value of his inventory more than outweighing the cost of the loan terms offered by Suros Capital, borrowing to fund new growth opportunities ensured he did not lose out on the asset appreciation of the items already in stock. Most importantly, he has been able to continue trading by adding more fast moving stock to his inventory.

Speaking about the new product, Charles Hodge said, “We are delighted to be able to offer watch and jewellery dealers this unique new borrowing facility and have already seen a lot of interest from dealers, who do not want to miss out on the market appreciation of particular stock items.”