The lender notes a 36% increase in requests since Christmas
Luxury asset lender Suros Capital has reported a surge in enquiries for urgent funding to meet tax obligations before the impending January 31 deadline.
The lender has observed a 36% increase in requests since Christmas, primarily from financial advisers seeking quick funds for clients facing unexpected tax demands or immediate cashflow challenges hindering their ability to temporarily cover the required funds.
In one case cited by Suros Capital, a small business owner and part-time property developer faced an unforeseen tax bill of £47,000 due at the end of the month. The unexpected financial burden stemmed from a fluctuation in business revenue during the pandemic, resulting in a subsequent increase.
The projected tax bill for 2023 had been based on significantly lower income from the previous financial year. However, with the rebound in business during 2023, the individual faced a considerably higher amount to settle their account in January.
The client, who possesses Banksy fine art, swiftly leveraged the asset, leading to the release of the entire £47,000 to the adviser’s client within 48 hours of inquiry. The loan, spanning four months, enables the client to repay the borrowed amount once they are back in funds at the end of the term.
“At this time of the year, we see a significant increase in the number of cases seeking temporary short-term funding for income tax demands,” commented Ed Blackmore (pictured), business development director at Suros Capital.
“Every year, the number of enquiries increases as advisers are recognising the value of having a lender who can lend against a luxury asset within 24 to 48 hours of enquiry. The completion time is just dependent on how quickly we can assess the luxury asset.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
