For high-net-worth and ultra-high-net-worth (UHNW) individuals, much of their wealth often sits in forms that traditional banks struggle to quantify — let alone finance. Large equity holdings, rare art, or undeveloped land can all represent extraordinary value on paper, yet they typically generate little or no income. For borrowers whose balance sheets are asset-rich but cash-light, this creates a paradox: vast wealth, but limited liquidity.

In 2025, that paradox is being solved by the private credit market. Specialist lenders, family offices, and non-bank institutions are creating bespoke lending structures designed precisely for these kinds of assets. The goal is no longer to prove affordability through monthly income, but to demonstrate collateral strength, liquidity potential, and strategic intent.

These arrangements allow borrowers to access capital without selling, preserving long-term ownership, control, and investment strategy. In effect, value is no longer locked away; it can now be mobilised intelligently.

The Challenge: Why Banks Struggle with Non-Income Assets

Traditional lending models are built around predictable cash flow. A property with tenants, a business generating profit, or a portfolio producing dividends all create measurable income that fits into a lender’s affordability framework. Non-income-producing assets, however, fall outside this structure.

Land that hasn’t been developed, a privately held shareholding with no regular distribution, or an artwork hanging in a private collection cannot easily be valued for income potential. As a result, even the most prestigious private banks often shy away from financing these assets — not because they lack value, but because they lack yield.

This is where private lenders have rewritten the rulebook. Their model focuses on asset value, not income. They evaluate the intrinsic worth, liquidity potential, and structural security of the collateral, and they price the deal accordingly. For the right borrower, it means that a static asset can suddenly become a source of liquidity — without compromise or sale.

Lending Against Land: Value in Its Purest Form

Land is one of the oldest and most tangible forms of wealth. Yet if it is undeveloped or held for strategic reasons, it can be difficult to leverage in conventional finance. Agricultural land, planning plots, and unbuilt holdings may appreciate in value, but they don’t generate rent — making them invisible to high street banks.

In the private credit space, however, land is viewed differently. It represents security, not income. Lenders look at title clarity, valuation robustness, and the borrower’s exit strategy. If the land is well-located, unencumbered, and demonstrably saleable, it becomes a powerful foundation for structured credit.

Typically, facilities against land are designed around loan-to-value ratios of 40–60%, depending on the asset’s characteristics. The repayment often links to a defined liquidity event — such as a sale, rezoning approval, or the next stage of development finance. For developers and family offices, this approach provides vital working capital during the pre-development or planning phase, when costs are high but cash flow is low.

Private lenders often enhance the security structure with first legal charges or cross-collateralisation across income-producing assets within the borrower’s portfolio. In some cases, personal or corporate guarantees are layered in for additional comfort.

The result is flexible, short-to-medium-term liquidity, secured against real value — turning idle land into an active part of a wealth strategy.

Lending Against Shares: Financing Without Selling

For business owners, entrepreneurs, and family offices, a significant proportion of personal wealth is often tied up in equity — either in listed companies or private holdings. Selling shares to access liquidity can be tax-inefficient, strategically damaging, or simply poorly timed. The alternative is share-backed lending, a growing part of the private credit landscape in 2025.

In this structure, the borrower pledges a portion of their shareholding as collateral for a loan. For publicly traded shares, this might take the form of a margin loan, where the lender advances a percentage of the share value, adjusting for market volatility. For unlisted or privately held shares, more bespoke arrangements are created, with deeper due diligence into company performance, governance, and exit timelines.

These facilities often sit between 30% and 70% loan-to-value, depending on liquidity, volatility, and diversification. Repayment might be interest-only for a defined period, or linked to dividends, distributions, or future buyouts.

For family offices and UHNW borrowers, the key benefit is control. They retain ownership and voting rights while accessing significant liquidity for new acquisitions, diversification, or succession planning. Unlike traditional personal loans, share-backed facilities are structured around the character of the asset, not the borrower’s income stream.

In some cases, lenders accept a blend of quoted and unquoted holdings, applying discounts to private company shares to reflect liquidity risk. The lender’s analysis focuses on concentration risk — whether the shares are in a single entity or a diversified basket — and on any restrictions over sale or transfer.

What once required a sale now becomes a matter of structured leverage — discreet, flexible, and aligned with long-term wealth management goals.

Lending Against Art and Collectibles: Where Passion Meets Capital

The art and collectibles market has quietly evolved into a sophisticated lending environment. For the right borrower, fine art, rare watches, jewellery, or vintage cars can serve as credible collateral — provided the valuation, storage, and provenance are beyond question.

In 2025, specialist lenders and family offices are integrating art finance into broader portfolio lending. A collector who holds a £10 million painting, for example, can access £3–5 million in liquidity, depending on the asset’s market depth, artist liquidity, and insurance status.

The process begins with independent appraisal and verification of authenticity. The artwork is then placed under controlled storage — often in bonded facilities or approved locations — with comprehensive insurance coverage. Only then will a lender issue funds, typically on a fixed-term, interest-only basis.

For UHNW clients, this kind of lending offers dual benefits: it preserves ownership of culturally significant assets while unlocking capital for new investments, acquisitions, or family office liquidity planning.

Lenders in this space are meticulous. They scrutinise provenance records, exhibition histories, and even the borrower’s track record as a custodian. The objective isn’t simply to lend against a painting or car — it’s to underwrite a piece of a portfolio with precision and discretion.

As a result, art finance has matured from niche lending into a legitimate tool of portfolio management, often sitting alongside property, equity, and private debt facilities.

Structuring with Cross-Collateralisation

The most sophisticated borrowers rarely rely on a single asset type. Instead, they combine multiple asset classes — perhaps a parcel of land, a portfolio of shares, and a collection of art — to support a larger or more flexible facility.

This approach, known as cross-collateralisation, benefits both parties. For the borrower, it enhances borrowing capacity and allows for smoother liquidity management. For the lender, it diversifies risk, reducing exposure to any one asset’s valuation or liquidity event.

However, cross-collateralised structures require exceptional precision. Legal charge hierarchy, intercreditor arrangements, and custodial control must all be defined carefully. The lender must know exactly what recourse exists in each scenario, and the borrower must retain enough flexibility to manoeuvre strategically.

When executed properly, these facilities become powerful instruments of capital efficiency — enabling liquidity across an entire portfolio rather than a single asset.

The Shift Toward Private Credit

Over the past five years, private credit has become the dominant source of capital for UHNW borrowers seeking to monetise illiquid assets. The reasons are straightforward: speed, discretion, and flexibility.

Where a private bank may take months to approve a facility, private credit funds often make decisions within days. They are not bound by rigid affordability models or corporate lending committees, and they can tailor structures to fit each borrower’s profile.

Confidentiality is another major advantage. These transactions are discreet, with no retail exposure or impact on a borrower’s credit footprint. Many are arranged directly between family offices or through intermediaries like Willow Private Finance, ensuring privacy at every stage.

Flexibility completes the picture. Private lenders can adjust LTVs dynamically, include partial recourse, or incorporate performance triggers based on asset appreciation. They understand that sophisticated borrowers value optionality as much as capital.

For many UHNW clients, private credit is now a core part of strategic liquidity management — not a last resort, but a first choice.

Managing the Risks

Despite the advantages, borrowing against illiquid assets is not without risk. The most obvious is valuation volatility. Market fluctuations, particularly in equity or art markets, can reduce collateral value and trigger margin calls.

Liquidity risk is another consideration. While land or private company shares may hold value, they can take time to sell. Borrowers must ensure that their exit strategies align with facility terms.

Regulatory and compliance scrutiny has also intensified. Source-of-funds verification, anti-money-laundering controls, and asset provenance checks are standard practice. For physical assets like art or collectibles, storage and insurance obligations can add cost and complexity.

The best facilities are structured conservatively, with ample headroom on loan-to-value and clearly defined repayment or refinance strategies. Managed correctly, the risks are not barriers — they are simply part of the sophistication of the structure.

Strategic Applications

When structured intelligently, illiquid-asset lending becomes more than just a source of liquidity — it becomes a strategic tool. Borrowers use it to fund property acquisitions, refinance maturing debt, seed new ventures, or manage intergenerational wealth transfers.

It also plays a role in tax optimisation, where liquidity can be created without triggering a taxable sale. Family offices frequently use these facilities to smooth cash flow between investment cycles or provide capital for co-investment opportunities.

In each case, the objective is the same: to use debt as a lever for opportunity, not a burden.

How Willow Private Finance Can Help

At Willow Private Finance, we work with a trusted network of private banks, specialist lenders, and family offices that understand complex, non-traditional assets. Our expertise lies in structuring lending that aligns with the realities of high-value portfolios — from undeveloped land and large equity holdings to fine art and collectibles.

We manage the entire process discreetly and efficiently, ensuring valuations, security structures, and legal frameworks meet both lender and borrower expectations. For clients seeking to raise liquidity without selling core holdings, we provide access to the lenders who can make it happen.

Whether your goal is to fund an acquisition, unlock capital for new investment, or optimise leverage within your existing structure, we ensure every facility is tailored to your long-term strategy.

Frequently Asked Questions

Can I borrow against land that isn’t generating any income?

Yes. Many private lenders and family offices now provide credit secured against undeveloped or agricultural land, even when it produces no income. The key factors are valuation stability, location quality, and a clear exit strategy — such as sale, rezoning, or development. Typically, loan-to-value ratios range from 40–60%, depending on the asset and borrower profile.

How does lending against shares work for private borrowers?

Share-backed loans allow you to access liquidity without selling your equity. The lender takes a charge over part of your shareholding — whether in listed or private companies — and advances funds based on a percentage of its value. For quoted shares, these facilities function much like margin loans. For private holdings, due diligence is more intensive, but the structure remains bespoke, with LTVs usually between 30–70%.

Can art or collectibles really be used as loan collateral?

Yes — provided the assets are authentic, independently valued, and properly insured. In 2025, art finance has become a mainstream solution for UHNW borrowers. Lenders work with valuation specialists and bonded storage providers to manage risk, and the proceeds can be used for investment, refinancing, or liquidity events — without selling treasured pieces.

What risks should borrowers be aware of when using illiquid assets as collateral?

The main risks are valuation volatility and liquidity timing. If the asset’s value falls, you may be required to provide additional collateral or repay part of the loan. For physical assets, insurance and storage costs can add complexity. Borrowers should work with advisors who understand these risks and structure conservatively to preserve flexibility.

Why use private credit instead of a private bank?

Private credit lenders operate outside traditional banking constraints, allowing for faster approvals, greater discretion, and more creative structuring. They are ideal for borrowers with complex or non-income-producing assets who value speed and confidentiality. While private banks focus on income verification and affordability, private credit focuses on asset value and strategy.

How can Willow Private Finance help me access this type of lending?

Willow Private Finance works with a network of private lenders, family offices, and boutique credit funds that specialise in non-traditional collateral. We handle every aspect — from valuation and lender selection to deal structuring and completion — ensuring discretion, efficiency, and strategic alignment with your wider portfolio goals.



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