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Esoteric Assets

Program Description


Esoteric Asset Loans are secured by moveable hard assets of high value such as art, gemstones, precious metals, and other collectibles. These loans are primarily underwritten based on the valuation of the esoteric asset, and in case of a default by the borrower, OBC has full recourse to liquidate the esoteric asset collateral to recover any loan amount outstanding.


Financing Terms


Loan Amount:                                         Minimum loan amount is $500,000 USD.


Currency:                                                 USD, CAD, EUR


Collateral:                                                Esoteric assets such as gemstones, art, precious

                                                                  and specialty metals and other collectibles for

                                                                  which a wholesale market value can be

                                                                  assessed, and which can be stored with a

                                                                  third-party for the duration of the loan.

Loan Term:                                              Maximum 1 year, subject to asset market 


Interest                                                    12% to 20%, payable upon loan disbursement.


Payment Terms                                     Interest is deducted from loan

                                                                  disbursement. Principal due in a single

                                                                  lump sum upon loan maturity.


Extensions                                               Extensions available by mutual agreement,

                                                                  subject to extension of financial instrument.


Underwriting Process


The Esoteric Asset Loan is underwritten primarily based on the wholesale market value of the asset proffered as collateral. Borrower credit-worthiness and/or project feasibility take secondary importance. OBC will undertake customary legal and financial due diligence on all material aspects of the financing transaction including but not limited to the collateral, the borrower/project and the use of funds.


Appraisal Process


The most important aspect of underwriting is the appraisal process through which we arrive at wholesale market value. Based on the type of asset being analyzed and its location, AIF will engage the services of a qualified world-class appraiser. The appraiser will first perform a technical analysis of the asset to determine its exact specifications including the analysis of its physical, chemical, compositional, visual, and other characteristics.


After the technical analysis is completed, the appraiser will undertake a market study to determine the wholesale market value which is defined as the price at which all of the assets could be immediately sold to dealers in the marketplace. In arriving at wholesale value, the appraiser will study historic and recent sales of similar assets and will also contact market dealers.

















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