Collateral lending is a form of lending that is based on the use of collateral to back the loan in the event that the loan is not repaid in full. Pawn shops are collateral lender that provides loans based on using personal items as collateral.
How does collateral lending work?
Collateral lending is where a lender provides a loan in return for an item as collateral. The collateral item has to be kept by the lender for the length of the loan term whilst the loan is repaid. The collateral item will be stored securely and if the loan is not repaid in full the lender takes ownership of the collateral item.
Many types of lending are available to people seeking a personal loan which includes collateral loans which can be more traditional loans that banks and financial institutions offer that are secured against a home.
Pawn shop collateral lending is different to other lenders as they provide loans based on a wide range of assets for small to larger amounts of money. Lending is based only on the value collateral item and there is no need for additional paperwork or checks including credit checks.
How much can be raised from collateral lending?
Collateral lending amounts are limited by the value of the item that is being used as collateral, so the best way to know what you can borrow is to get a valuation of your item. At Florida Pawn, we will assess your item before offering you a fair and competitive collateral lending rate and a loan amount.
Collateral lending terms from us are available from 60 days, although it is possible to repay the loan early without any early repayment charges.
What can be used for collateral lending?
Collateral lending at pawn shops are based on a broad range of items as they handle such a variety of goods that are of a significant value that they are worthwhile as collateral for a loan. They offer to lend against small items such as jewelry including gold, rings, necklaces, bracelets, earrings and watches, as well as clothing and accessories.
You can also use larger items like electronic goods such as computers, cell phones, iPads, TVs, stereos and power tools. You could even use very large items such as vehicles as collateral such as cars, motorcycles and boats.
Where to find a collateral lender
Florida Pawn is a collateral lender that has two stores in Hollywood and Margate that offer loans for a wide variety of items. With experienced and highly skilled staff, we provide professional and friendly service that delivers loans quickly and efficiently. Visit one of our stores to find out how much you can raise from your belongings from collateral lending.