Identifying the Need

The organization faced significant pressure to optimize capital usage and manage risks associated with high-value, non-traditional assets like luxury watches. They required a comprehensive, reliable solution to transfer risk, boost LTV ratios, and maintain their competitive edge. This called for a sophisticated approach to asset valuation and risk management.

The Barker Solution

Barker partnered with the organization to provide a tailored solution that addressed their specific needs:

1. End-to-End Valuation and Risk Solution: Barker’s partnership enabled the client to launch a new vertical focused on watch lending. Our solution offered precise, up-to-date valuations and comprehensive risk management.

2. Risk Transfer and Capital Efficiency: By backing our valuations with warranties and AAA-rated insurance, Barker facilitated effective risk transfer and optimized capital requirements.

3. Integration and Support: Barker worked closely with the client to ensure seamless integration of our technology into their existing processes, providing full support and training to their team.

Implementation Process

The implementation process was streamlined and efficient. Barker's team collaborated closely with the client to integrate our valuation technology into their operations, ensuring minimal disruption. Comprehensive training and support equipped the client’s team to utilize the new system effectively.

Achieving Results

The impact of Barker’s solution was significant and immediate:

Increased LTV Ratios: The client experienced a substantial increase in LTV ratios, allowing them to offer more competitive loan terms.

New Vertical Launch: Barker's solution enabled the client to successfully launch their new watch lending vertical, expanding their market presence.

Enhanced Profitability: With improved risk management and capital efficiency, the client saw a notable increase in profitability.

Ongoing Integration: Barker’s solution is now utilized for every loan processed by the client, ensuring ongoing benefits and sustained performance improvements.

Annual Capacity and Future Growth

The client has committed to significant growth in their use of Barker’s solution:

2024: $40 million in annual capacity requested

2025: $200 million in annual capacity requested

By partnering with Barker, this prestigious luxury retail and lending organization has successfully navigated the complexities of jewelry and watch asset-backed lending, ensuring a more secure, profitable, and sustainable future.