Who out there provides reasonable loans against a wine portfolio in a professional offsite storage facility? I remember discussing with someone a year ago or so who provided loans at a reasonable rate… but you had to transfer the wine to their own owned professional storage facility. I cannot imagine loans would be cheap with UST where they are, but curious to know what the options are.
I would just ask my banker. If he refuses, that might be reasonable information to consider as well 
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Who offers loans against gold stored in your safety deposit box? Isn’t much of a secured loan when you don’t hold the collateral.
That is not the right metaphor. There are lenders our there and it is a low loss product. You have inventory, easy appraisal, and control accounts to keep an eye on ins and outs. More similar to a brokerage account than a safety deposit.
Not really since the only one who will do margin loans on a brokerage account is the broker holding the securities and can control the sale and withdrawal of funds. In your own storage there’s nothing stopping you from sending the entire lot to auction tomorrow. Sure you can find someone to lend money under any conditions, but I can’t imagine the rate will be low like one with truly secured collateral.
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Found this on a Google search. No idea about them.
Interest rates from L + 6.00% to L + 8.00% per year with no compounding.
11.5%-13.5% today. They price it as an unsecured loan because it basically is.
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Right. There’s a reason they call it specialty finance.
Call John Kapon or Emigrant Bank 
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What’s the point of this? How much are you trying to borrow? Most people with good credit and reasonable income can borrow $100k as an unsecured personal loan with ~7-8% interest. If you want more info feel free to pm me.
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Have you gone into the business of lending? What are your rates?
I saw a company in the UK who were doing this a while back. Turned out to be a scam.
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Haha no just know about some decent options
That is who I interfaced with earlier. Pricing was L + 5%, no prepayment penalty. I think it was 50% LTV to your wine collection value (I don’t recall). They do $100K+ loans. The issue with my loan was its smaller loan size than they usually deal with + they didn’t like my storage facility, and accordingly wanted me to transfer the wines. Seemed like a fairly simple process, a few days.
So yea, this product exists, its cheaper then taking an unsecured loan (reflecting the fact it isn’t an unsecured loan, but @MChang 7-8% for an unsecured loan sounds pretty darn good for the moment though!), you can get much more than $100K, and it seemed pretty fast. But for me, I would need to change storage facilities. It’s not that big of a deal if I absolutely needed the loan, but in this case I don’t absolutely need it and would rather not switch.
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Seems you missed the part in Shan’s description where the borrower has to transfer the collateralized wines to the lender’s storage facility.
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Winecredit doesnt always require a transfer. If they have a facility who they trust has great controls and will enter i to a control account, then a transfer is not required.
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Makes sense.
Looks like there was an NYT article on this a few years back, featuring one of our own (Nick Gangas) as an interviewee:
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Someone mentioned this thread to me and asked my opinion. I am a cranky old man today, so my opinion is that people who do not know what they are talking about should listen rather than express an opinion. For example, if L refers to Libor, there is no US$ Libor any more, except for the synthetic Libor published by the FCA because the Brits haven’t figured out Brexit yet, so how long will it take for them to figure out the abolition of Libor?
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At the risk of thread drift, I can’t work out who would be lending unsecured at 7-8% right now? That is effectively equal (SOFR+170 to 270) to high quality secured commercial mortgage pricing (which is done at scale). The current average credit card rate (unsecured consumer credit) is over 24%. A 1yr T-Bill currently yield 5.35%. Why would anyone lend unsecured consumer credit at 165bp-265bp over the risk free rate?
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Eh everyone in lending business should know better but I still run into old-timey bankers sometimes who still use “L +” as a shorthand out of habit (a bad habit, to be sure). Then I would have to ask them “You mean SOFR, right? Because I just did like 10 LIBOR amendments last month alone for your legal department to convert to SOFR.” And then they would correct themselves.
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