The proceeds of these loans are used for a variety of reasons that include bridge financing to close deals already in progress, buying time while finances are being restructured for the long-term, providing capital to acquire certain assets, investing in new business and product development, and funding seasonality, customer payment and general working capital issues.
Paul Aitken, Founder and CEO of Borro.com said: “The Government bail-out of the banks has been slow to take effect. Banks just aren’t lending. So clients are coming to us because we offer quick, relatively cheap short-term liquidity – and we do not scrutinise their business motives or personal financial status. We don’t need to. Our business is about making secure loans against personal valuables at the fairest valuation and best rates in the industry.
“To meet client demand, we are now able to provide guaranteed short-term loans from as little as £100 to as much as £1,000,000 – to anyone who has items of value. Our core customer is new to what we refer to as ‘pawn-lending’ and they typically borrow £500 to £1000 against jewellery or watches to cover education or household-related expenditures. But in recent weeks, we have seen a surge in interest from the small business owner for much larger loans. We hope our decision to offer loans up to £1million will help meet that demand.”
Have your clients taken unusual measures to get their hands on cash because of the credit crisis? Tell us using the comment section below