Pawnbrokers See Increase in Loan Business
Pawnbrokers See Increase in Loan Business
Because the banks are not lending, it’s not surprising that the pawnbroking business is enjoying an upsurge. But many people don’t realize just how much the pawn industry is changing, and the level of benefits they are bringing to many different levels of society. What are those changes, and what are those benefits?
The biggest advantage for pawn borrowers is that they can never get into debt over their head, and their debts cannot spiral out of control. Many high street banks and mortgage lenders have been criticised, not only for lending too much, but then imposing punitive late payment charges and default penalties on borrowers that they knew would not be able to keep up the payments anyway.
Then, when things have spiralled out of control, they call in the debt collectors, bailiffs and repossession agents, and by the time they have finished, the actual cost of a bank loan gone bad can be orders of magnitude higher than the headline APR quoted at the outset.
And if you think the high street banks are predatory, many other alternative short term lenders, such as pay day loan companies and doorstep lenders are not much better, and some can be much worse!
Borro.com, the world’s first online pawnbroker, charges between 4% - 5% interest per month. This is much more affordable than the 25% plus charged by the typical UK pay day loan company, and although a pawn loan might seem expensive compared with a high street bank loan, the great thing is that the borrower can always be 100% confident that they know exactly what they are taking on.
With a pawn loan, there are no hidden extras charges, unpleasant legal consequences or adverse effect on credit ratings - even if the borrower decides not to extend or pay off the loan. Also, pawnbrokers are tightly regulated by the UK Government, so borrowers enjoy every possible legal protection.
It’s no surprise, therefore, that the pawn business is moving upscale. More and more high net worth individuals, fed up with the poor service they receive from credit-crunched banks, are using their own personal collateral in order to get a flexible, fast and controllable short term loan.
Borro CEO, Paul Aitken, says “We are seeing a definite increase in the proportion of upscale pledges, including designer jewellery & watches, as well as luxury brand cars, works of art by leading artists & sculptors, expensive antiques and very valuable items of sporting, entertainment and military memorabilia. While discretion and totally secure levels of service are essential in order to attract more discerning customers, it’s clear that asset-backed lending is perceived as an increasingly useful form of short term finance throughout the social scale”.
Borro.com offers asset-backed loans from £100 - £100,000 for 1 - 6 months (extendable by mutual agreement) against all forms of personal valuables.
Fast cash is easy cash at low rates with online pawn shop, Borro.com. If you need a personal loan, secured loan, collateral loan in the form of a short term loan which is also a low interest rate loan, get a cheap, no risk loan from Borro.com.
Visit Borro.com today, or phone us, free, on 0800 756 9877.
