What is a Collateral Loan?
At Boca Raton Pawn we specialize in high dollar collateral loans. We are experts at getting cash to our clients as quickly as possible. But what exactly is a collateral loan?
A collateral loan is the same as a pawn loan. Basically, it is a short term bridge style loan. Collateral (physical items) are held by the shop throughout the duration of the loan to protect against a default. A collateral loan works similarly to a regular loan, but instead of using your credit history to get cash upfront, we use items such as Rolex watches, diamond jewelry, or Chanel handbags.
Here is an example. Let’s say you are in sales and earn commission for a living. You normally do very well but it has been a slow month and your mortgage payment is coming up. How can you raise quick cash? A simple solution would be coming to Boca Raton Pawn and pawning a valuable for a short term loan. You would bring in your item, say an Audemars Piguet watch, and leave it with us. You would tell us how much you need and if the item is worth that amount we can give you cash for it. Let’s say your mortgage payment is $3,500, you might not want to borrow more than that even if the watch is worth $10,000, because it will be easier for you to pay back. Once the paperwork is completed an interest payment is due every 30 days throughout the duration of the loan. When you are ready to pick your item up, simply bring in the loan amount plus any accrued interest and you get it back.
Collateral loans are a great alternative to a regular loan for a few reasons. First, there is no credit check required. That means we don’t care what your credit is, as long as you have the collateral to justify the loan, we can proceed. Second, they are fast. We offer loans up to $1 million in the same day. What bank can you go to and get that kind of money in a day? Finally, all collateral loans are “under the radar”. Meaning they will never show up on a credit history anywhere. Whether you complete the loan and pay it off, or default on the loan and lose your items, it will not affect your credit either way. It’s a great option for someone who just needs some quick cash in a pinch.
Contact us at 561-347-8635 for more information.