09 Nov Reframing Pawnbroking: Your way out of a financial jam:
I’ve been talking a lot recently about my crusade to reframe the Pawnbroking industry in Wellington, Hutt City and, in fact, the whole of New Zealand. I hear it again and again from misinformed people who like to paint a picture of a dingy little store with dusty trinkets and nefarious characters, but pawnbroking has seen a resurgence recently due to its ability to tap into the collateral of high-value items. That’s not really something a bank can do for you, well, certainly not at the speed at which The Pawnbroker operates. Lending doesn’t need to be the sterile one-dimensional rat race, and people must utilise the pawnbroker model to get the most out of their assets. Pawnbroking has evolved, and it’s no longer about buying and selling bric-a-brac for a packet of durries – it’s about consolidating and utilising all your assets to reach your goals.
I mean, it’s 2017! Look at this!
“Pawnbroking remains the Cinderella of the consumer credit market. Victorian associations of furtiveness and desperation linger, despite investment by big UK chains in bright, modern premises in recent years.” Financial Times, June 2017.
Things have changed! Pawnbroking is my livelihood, and I’m here to say Pawnbroking is not a dirty word, or more importantly, a dirty industry.
A Case Study: There’s more than one way to cut the grass
This week, we’ll look at another simple case study that illustrates just how powerful a superstar pawnbroker can be.
Client: 35-year-old male,
Business: Local businessman
Goals: Purchase franchise license
Our local businessman, we’ll call him Simon, wanted to purchase a lawn mowing franchise. He researched, did his homework and found the perfect franchise opportunity. All Simon needed to do was come up with a measly $10,000. So, naturally, it’s off to the bank for Simon with dreams of lush green freshly mowed grass.
The bank was helpful and assured Simon that all would be fine with his application. Then, after waiting a week — BANG! — the bank comes back with a big old NO!
It turned out Simon had a small blemish on his credit history from long ago when he was made redundant. Also, as the lawn mowing franchise was new, the bank didn’t have evidence of existing financials or income, they didn’t feel comfortable that he would be able to make the repayments. Ouch. Cheers bank. A disappointed Simon began to see his business dream floating away.
The Pawnbroker to the rescue!
And then Simon caught up with an old friend over a flat white who recommended he check out The Pawnbroker. He came on down to my office, and I let him know that a collateral loan was exactly what he needed to get the lawn mowed.
“What kind of assets do you accept?” he asked. “I don’t exactly have the Crown Jewels hidden under my mattress.”
“Simon,” I said, “we lend on all sorts of assets, whether they be luxury watches, diamonds, gold, art, heirlooms, technology and cars.” His eyes lit up when I said gold jewellery.
“Would you consider a gold necklace?” he asked. “It’s an expensive one my mother left me.”
“Absolutely,” I responded, “depending on its value.” He smiled.
Simon ended up pawning a gold necklace which he used to purchase the license and the equipment he needed. And it didn’t take us long to sort him out – certainly not a whole nail-biting week. He has since returned, repaid the loan and drove off in his newly branded van with a smile on his face. He’d beat the banks, which is a rarity.
These are the kinds of stories we hear about all the time at The Pawnbroker. People have dreams. They need cash. They have assets. And we make it happen. It’s that simple.