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FOR TRUSTED ADVISORS

CLICK ON THE VIDEO TO LEARN ABOUT OUR LUXURY LINE OF CREDIT AND SCROLL DOWN TO READ OUR FREQUENTLY ASKED QUESTIONS FROM TRUSTED ADVISORS.

FAQs

  • How are/could rates be calculated for collateralized loans?

  • Rates are determined by the loan amount and the type of asset used for collateral. For instance, a client who borrows $10,000 on a luxury watch would typically pay 3-5% per month, interest-only. Interest rates typically decrease as loan amounts increase.


  • How do you assess the value of assets and arrive at a loan amount or purchase price?

  • Our team of underwriters will determine the used value in today’s market and arrive at a loan-to-value (LTV) ratio from that number – typically 65-75% of the item’s current worth, not its original purchase price. Different asset categories will have different LTV ratios. For example: new Rolex that sells for $25,000 may, on today’s used luxury market, have a value of $20,000. In such a case, our underwriters would approve a loan amount of about $15,000, depending on condition.


  • How do you safeguard assets in your care, including larger scale assets such as automobiles, boats, etc.?

  • We take possession and title of all assets regardless of their size, in most cases. For oversize items such as cars that are not able to be shipped to us, we will come to you and pick them up and make arrangements for secure local storage of the asset. In some cases we allow our clients to maintain possession of titled assets.


  • What are your loan-default terms and conditions?

  • Much the same as a Home Equity Line of Credit (HELOC), typical Lux Exchange clients make interest-only payments on a monthly basis. Payments are due every 30 days and have a 10-day grace period before late fees are assessed – as with a typical bank loan.


  • What are your sources of capital and current level of capitalization?

  • Lux Exchange investors are our principal source of capital.


  • If you are in fact acquiring this item from my client should they continue or cancel their insurance of it?

  • We recommend keeping insurance as an added layer of security; but it is not required except for loans on titled items.


  • What governmental regulations are you subject to and under what jurisdiction(s)?

  • As a Colorado-based business, we are subject to the regulation set forth by the state of Colorado and the ordinances of the city of Glendale, Colorado, who has granted us our operating license.


  • What procedures does the company have in place to guard against employee theft or fraud?

  • Upon arrival, assets are immediately moved to a locked processing room where they are logged into a tracking system. Our processing room is safeguarded by 24-hour surveillance, biometric security, bulletproof glass, concrete floors and reinforced walls. One evaluated, your asset is then barcoded and placed in a vault until it is returned to you.


  • What background checks do you run on prospective and current employees?

  • We have stringent hiring practices including thorough background checks, and all employees are held to our code of conduct.


  • Do any of your employees have criminal records?

  • No, a criminal record would disqualify a potential employee from working for us.


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The Lux Exchange prides itself on discretion and speed. In certain instances, in-person appointments are a necessity.

For local Coloradans, our Headquarters in Denver is a secure and private meeting place. For our out-of-state clients, we can come to you.

Please complete the form below and we will be in touch immediately.








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