Is a Pawn Loan Right for Me?
What is A Pawn Loan and Why is It the Right Option for Me?
Due to popular TV shows bringing the pawn business into the spotlight, more people than ever before are curious about collateral lenders and their businesses. Pawn loans can be confusing and somewhat intimidating to those who have never had a collateral lending experience before, and The Loan Companies would like to help answer the most common questions about the industry and process.
What is a pawn loan?
A pawn loan is a non-recourse loan that is based entirely on collateral. The Loan Companies will not perform a credit check, request employment verification, or review past defaults. This means that the transaction will never affect a borrower’s livelihood, and there is no chance of being sent to collections if the borrower chooses to default.
What are the terms?
The four- month loans are regulated by federal, state and local law, and there is always an option to extend if a borrower requires more time to pay the loan in full and redeem. At The Loan Companies, over 90% of clients redeem their items, but for the small percentage that choose not to pay back the loan – the only loss is the pawned collateral.
What are the benefits of a pawn loan?
For those who need a quick infusion of cash, making a pawn loan is a safe and convenient way to obtain the money you need without involving a bank or a broker. At The Loan Companies, most clients leave our private offices with cash in hand usually in under an hour – and they can rest-assured that their collateral is safe in vaulted security until they return to retrieve it.
Lending vs. Selling
There are many clients that take out collateral loans instead of selling for sentimental reasons. In many cases, people pawn their engagement rings, wedding rings and watches that were passed down through family, or jewelry that was purchased for a special occasion. These items are personal and important and selling outright might not be an option – which is why a short-term pawn loan is an appropriate alternative.
Types of Collateral
We employ skilled gemologists and specialists in the field who are prepared to give a fair and a quick and expert valuation of your collateral. Due to the nature of our size as a company, our interest rates are lower, and we often charge less than our competitors. If available, please remember to bring your box and papers for any watches, as well as your GIA certificates for any diamonds or colored stones. Types of collateral we lend against and purchase include:
- Gold and diamond jewelry
- Luxury watches
- Fine art: contemporary and modern
- Engagement and wedding rings
- Gold and numismatic coins
- Sports and celebrity memorabilia
- Rare wines and spirits
- Auction-worthy handbags
- Certified diamonds and gemstones
- Sterling silver tableware and flatware
With over 100 years in business, The Loan Companies is familiar with signed jewelry, diamonds, watches, art and memorabilia, and its loan officers are prepared to make strong offers, whether for a pawn loan or outright purchase.
Being comfortable with your lender is a big part of the loan process, but with over 100 years in business, The Loan Companies prides itself on its upmost confidentiality, professionalism and expertise. Deciding to pawn can be a difficult decision, and The Loan Companies is happy to answer any question you may have about the loan process. Please contact the location nearest you for more information.