Pawnbrokers Taking 'Everything That Can Be Sold on eBay' as Collateral
Sunday, December 14, 2008
Even in Beverly Hills, lenders of last resort are thriving
We found found yet another story this Sunday focusing on businesses that are thriving in the midst of, (in fact, because of) the recession. Just a few posts down from this you'll read a CNN Money Report on how and why auctioneers are thriving at the moment (with that post appended by a companion story). Now from Reuters comes a report on pawnbrokers who find that bad times mean good business for them. Even in Beverly Hills, times are tough.
So what kinda stuff are these lenders of last resort taking in? "Everything that can be sold on eBay."
Motorhomes and cars, power tools to jewelry, guns and more.
"Banks aren't lending so people are coming here for short-term loans against collateral like diamonds, watches and other jewelry," said Jordan Tabach-Bank, CEO of Beverly Loan Co, self-described "pawnbroker to the stars."
"I do see my share of actors, writers, producers and directors," he said, but also cited more visits from white-collar professionals and especially business owners struggling to meet payroll obligations.
"We still do the five-, six-figure loans to Beverly Hills socialites who want to get plastic surgery, but never have we seen so many people in desperate need of funds to finance business enterprises," he added.
MORTGAGE BROKERS AT PAWNBROKERS
There are as many as 15,000 pawnbrokers across the United States. As the U.S. recession deepens, pawnbrokers -- long seen as a lender of last resort -- are noting a rise in business.
No national body keeps statistics for the sector, but proprietors across the spectrum say they are thriving as home foreclosures spiral and bank credit remains scarce.
"Business is good," Mo Money owner Eric Baker said. The store, which makes loans on anything from a motor home to guns to lawnmowers and jewelry, says turnover is up by around 20 percent over a year ago on a broader range of clients.
"You are seeing some bigger stuff, you're seeing some people you probably wouldn't have seen," he said.
ATR wonders what the pawn business would be like if more of those who needed some cash were more eBay savvy, or at least felt more at home in the online DIY environment? Food for thought.
We found found yet another story this Sunday focusing on businesses that are thriving in the midst of, (in fact, because of) the recession. Just a few posts down from this you'll read a CNN Money Report on how and why auctioneers are thriving at the moment (with that post appended by a companion story). Now from Reuters comes a report on pawnbrokers who find that bad times mean good business for them. Even in Beverly Hills, times are tough.
So what kinda stuff are these lenders of last resort taking in? "Everything that can be sold on eBay."
Motorhomes and cars, power tools to jewelry, guns and more.
"Banks aren't lending so people are coming here for short-term loans against collateral like diamonds, watches and other jewelry," said Jordan Tabach-Bank, CEO of Beverly Loan Co, self-described "pawnbroker to the stars."
"I do see my share of actors, writers, producers and directors," he said, but also cited more visits from white-collar professionals and especially business owners struggling to meet payroll obligations.
"We still do the five-, six-figure loans to Beverly Hills socialites who want to get plastic surgery, but never have we seen so many people in desperate need of funds to finance business enterprises," he added.
MORTGAGE BROKERS AT PAWNBROKERS
There are as many as 15,000 pawnbrokers across the United States. As the U.S. recession deepens, pawnbrokers -- long seen as a lender of last resort -- are noting a rise in business.
No national body keeps statistics for the sector, but proprietors across the spectrum say they are thriving as home foreclosures spiral and bank credit remains scarce.
"Business is good," Mo Money owner Eric Baker said. The store, which makes loans on anything from a motor home to guns to lawnmowers and jewelry, says turnover is up by around 20 percent over a year ago on a broader range of clients.
"You are seeing some bigger stuff, you're seeing some people you probably wouldn't have seen," he said.
ATR wonders what the pawn business would be like if more of those who needed some cash were more eBay savvy, or at least felt more at home in the online DIY environment? Food for thought.
posted by Chris and Frank at 11:36 PM
1 Comments:
I'm watching the news. You can get Picasso's in a pawnshop in Beverly Hills. Hurry...
Lisa, Los Angeles
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