Pawnshop Launches Internet Business

By | Aug 28, 2008

You’ve got to admit that we in the “sub-prime” financial services industry are a creative lot!

http://www.pawntique.com/ has come up with what we think is a great idea; an Internet based pawn lending business.

They make loans on jewelry, watches, gem stones, gold and memorabilia at a rate of 4% to 6% per month. The rate for loans from $1800 to $180,000 is 6% paid monthly. Loans of $1799 and less are 4% per month.

They appear to be the first true Internet pawn lender. Here’s how it works:
1) You go to their web site and select a category; watches for example
2) You estimate it’s market value, enter a description, post a picture if you wish…
3) You get an immediate estimate of the amount they will loan you
4) You then provide them with your contact info and ID.
5) They pay for a courier service to pickup your item
6) They inspect it and if both parties agree on the value they ACH the funds into your bank account. Typically they loan 40% of this value.
7) You pay 4% to 6% monthly interest.
8) At the end of 6 months you pay off the loan with interest and a “redemption fee” and they ship your item back by courier.
9) If you fail to repay the loan they sell the item

It’s discrete, convenient, there are no questions, no credit checks, and fast.

We like this business model!

Oh, and one more thing. It’s only available in England currently.

Which of us will be the first to launch a Internet based online pawnshop?

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3 Comments so far
  1. Jim Morrison September 4, 2008 9:48 am

    Hi,

    Its really good to see your blog post. Its really informative. I need to discuss something on your blog. Please mail me at my id jimmorrison122@gmail.com. It is really urgent.

  2. No Fax Payday Loans - David September 9, 2008 4:28 am

    Responsible lending is a basis for competition and for ensuring trust of consumers in every sector. The steps we take to ensure responsible lending include the affordability model we apply to our mortgage lending, through to our practice of sharing the majority of our data so that peoples’ overall financial circumstances are fully understood. Responsible lending involves a combination of compliance with legal requirements and business practices developed to regulate access to credit for private customers. There is no agreed definition of the concept but I have read an article which mention some of the practices of lending companies: http://personalmoneystore.com/moneyblog/

  3. Los Angles pawn shop December 9, 2008 3:18 pm

    This is an interesting article and I will bookmark this one. We do something similar here is Los Angeles, California but it’s mainly for jewelry and gold.

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