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?