Music memorabilia can be used as insurance if you want to borrow cash. High-end online pawnbroker Borro last week revealed a new trend of using valuable instruments or musical collectables to access loans.
Someone even used a bronze Ivor Novello statuette – which honours artists for contributing to British songwriting – to borrow £4,000.
These loans are liked by customers who want to pay off their debts more quickly than traditional lenders allow or have assets tied up and need ready short-term cash.
Borro has lent more than £200,000 against musical possessions in the past 12 months and has seen a 31 per cent rise in volume of this type of loan year-on-year.
Assets have included a Beatles record contract and a Gibson Les Paul electric guitar that backed a loan of £50,000.
FundingSecure – a new peer-to-peer pawnbroking website – can provide loans against this type of asset too. But investors using the website can also hunt better returns on their cash by being the ones to lend against the musical items.
The company, which is not yet one year old, has already issued loans against Michael Jackson memorabilia and a print of singer-songwriter Bob Dylan.
Read the full article at This is Money