How One Pawnshop is Helping All Entrepenuers and Small Business Owners
Photo Jewelry (Photo credit: Gnilenkov Aleksey)
Businesses of all sizes may be familiar with so-called “hard-asset” lenders. Unlike traditional banks or credit unions, the hard-asset lender evaluates items owned by the business for the purpose of a loan. For example, a business may own capital equipment, buildings, furnishings, or inventories. The lender calculates the value of these goods and lends on this basis, rather than the traditional credit/cash-flow model.
Biltmore Loan & Jewelry can help entrepreneurs, small business owners, and others in need of cash by making loans on owned items of value. Unlike the bank, the owner simply brings in the items or titles to owned vehicles or land. Precious metals, including gold, platinum, or silver, pieces can be particularly useful to the owner: for example, gold prices have appreciated an average fifty percent over the past five years!
This is one extremely useful route for businesses who struggle to find assets and funding for their businesses. In fact, one of the biggest ways that Biltmore managed to gain traction in their business was through the recession when many banks began to turn away small business owners asking for loans.
Valuable, Unwearable, Unwanted Jewels
An entrepreneur may own valuable jewelry that has been in his or her family for some time. Perhaps it’s inherited, old-fashioned, overly decorative, or just not something that the current owner wears. (For instance, character Kim Kaswell of “Drop Dead Diva” sums up an opinion that many people have about brooches: ‘Nobody over fifty wears a brooch!’)
A video posted by ABC Channel 15 includes a discussion about the kinds of valuable brooches that may be taking up space in the owner’s jewelry box or safety deposit box: platinum and diamond-encrusted jewelry from the Fifties or earlier; heavy gold animal-figure jewelry from the Sixties; or hallmarked jewelry from Tiffany & Co., Cartier, or other famous designers from any time can generate working capital for the owner.
Other Assets
Jewelry often carries a lot of value to it, but not all businesses have invested in a high amount of jewelry. Hard-asset lending doesn’t just include jewelry at this Arizona pawn shop. According to owner David Goldstein, company vehicles, owned land, and furniture are eligible property for hard-asset loans. Many smaller businesses will have more of these kinds of things available to put up as collateral for a loan.
Stress-Free Cash
According to the Small Business Administration, most small businesses fail in the first year of operations. A new business may not generate a profit for some time and the business owner must sometimes use creative financing techniques to fund his or her operations. Valuables like jewelry, coins, and other collectibles may provide cash flow at just the right time.
There’s no obligation to accept an offered loan on the item presented for consideration to Biltmore Loan and Jewelry. There’s also no need to expect haggling, as principals don’t take this approach. Instead, the owner receives a fast, professional assessment of an item upon which he or she wants a loan. If he or she accepts the offer, the piece or pieces are maintained in 24/7 surveillance in a Lloyds of London secured vault.
Outright Sale
Alternatively, the owner can request an outright sale of an item. In this scenario, the seller receives a lawful bill of sale and the funds agreed upon to purchase the item.
Conclusion
Unlike an estate buyer, Biltmore Loan and Jewelry makes asset-based loans. The borrower can close out the loan by repaying the amount received plus agreed-upon fees over a period of time. Biltmore Loan and Jewelry loans ready cash on valuable items like designer handbags, premium electronics, land, and vehicle titles.
Category: Business
