18 Dec PAWNBROKER Vs THE BANK
When the Medici family was split in two, one half of the family became bankers and the other, Pawnbrokers. The latter took with them the family crest, which incorporated the now instantly recognisable sign of the pawnbroker, the famous three balls.
It should come as no surprise that the origins of banking and pawn lending are so closely entwined – taking a pawn is, after all, simply another form of banking.
So’ why is it then that when people want to borrow money they automatically start walking to the bank? Firstly, because traditionally that’s the way it’s always been done and secondly, most didn’t or don’t know there is a friendly alternative.
What do you mean “Friendly” I hear you ask? Well banks are all good with the talk about how they want to lend you money, you see it on the TV adverts “are you in business do you need a business loan” then when you show up and ask them for it, it’s well firstly we need to complete an application form, then “we need to see your financials”, or “do you have a cash-flow forecast” and what about “profit & loss” this is even before they’ve completed a credit check. Then “BANG” the big question well what do you have as security “do you own any property” probably a week to two weeks later they will give you a decision and it might not be the one you were wanting!!
And what about the poor guy who has a business idea, and just starting out? I know from experience having tried to get the banks to loan me money over the years for business ventures, even the bank that liked to say yes in its advertising still said no!
God forbid if you do get the loan and fall behind in payments, late payment Fees’ Charges, Collection Costs, and a bad credit score!
Now don’t get me wrong banks do loan money it’s just to me they are very picky about what deals they want, and so they should, there in business to make a profit just like the pawnbroker.
SO WHY IS THE PAWNBROKER A FRIENDLIER LENDER?
Well unlike the banks, were not interested in your business, (that’s your business not ours), were interested in lending you money, so you can get on with your business or new venture we don’t want to see “cash-flow projections” “financials” “profit & loss”, heck we don’t even want to complete an application form or conduct a credit check on you, does this sound “friendly”? And if you don’t pay us back, unlike the bank there’s No late payment fees, No collection costs and No black mark against your credit score, and guess what? We will even do business with you again how’s that for friendly!
We won’t take weeks to give you an answer; we pay the amount into your bank account as soon as the one A4 piece of paperwork is completed in a matter of hours sometimes minutes, we will even give you cash if you want! How friendly is that?
And unlike the bank, we don’t need property as security for the loan, although we do require an asset of value
OK’ SO WHAT IS AN ASSET OF VALUE?
Well simply put an asset is something that has a value, for example some of the pledges (pawn loans) we are seeing today are on assets such as “Designer Handbags” “Classic & Prestige Cars” “Luxury Watches” if you walked into the bank and asked for a loan against your Date/Adjust Rolex watch valued at $25,000, I can guarantee they would say “I’m sorry” but we can’t accept that as security, BUT we will! Is that friendly?
SO WHO ARE OUR CUSTOMERS
Our customers come from all walks of life and borrow for all sorts of reasons. The main drivers for a customer using a pawnbroker are speed and convenience, some customers are borrowing to satisfy a short term cash flow need, all sections of society tend to be affected by cash flow problems at various times of the month or year.
Pawn broking today offers a Modern, Friendly Convenient way of getting the cash you need for whatever purpose quickly.
So’ which is friendlier? The Bank or the Pawnbroker? Well” I’ll let you decide, but next time you or a business acquaintance are looking for a loan, remember there is an alternative to the banks, and it’s called The Pawnbroker
If you would like to know more on how pawnbroking works visit www.thepawnbroker.net.nz