Online pawn goes upscale
Store offering loans in return for luxury jewellery and prestige cars
A GOLD Coast businesswoman is turning the idea of the dingy pawn shop on its head and dragging it into the 21st century with a digitalonly model targeted at the “cash poor, asset rich”.
Leanne Coneybear has run Southport-based Loan Lenders for 10 years.
The bricks and mortar operation is marketed as an “upscale” pawn shop where people can buy and sell luxury watches, jewellery and even cars.
Several years ago, Ms Coneybear said she started thinking about launching a purely online model in which asset-rich individuals struggling with cash flow could pawn off their Ferrari or Mercedes, Rolex watch or fine wine collection in return for a short-term loan.
“We’re creating a whole new space of online assetbased lending,” she said.
“A lot of other industries have taken their business models digital.
“Five years ago I thought: ‘How can I take this model online?’ There is demand for it.”
Ms Coneybear has spent $60,000 developing a website for her Pawnbank business, in which people can apply for loans using their luxury items as collateral.
Loans range from $1000 to $100,000 with interest rates from 5 to 20 per cent per month.
An interesting feature is the ability for clients to get a loan estimate via the website by putting in the item’s particulars.
There are 50,000 watches alone in the database with big-name luxury brands such as Cartier.
The application process involves the client uploading photos of their items to the website and providing proof of identity. Once the item has been sent to Pawnbank and had its value appraised, the loan can be approved and sent on the same day.
“It’s becoming increasingly hard for small businesses to quickly get a short-term bank loan when their cash flow is tight for things like wages, capital equipment purchases or unexpected bills,” Ms Coneybear said.
“With Pawnbank there are no credit checks, complicated financial contracts or proof of income required as we use verified assets as security.”
She is targeting $6.2 million in revenue for the first year and $50 million in loans by 2024.
“Typically, we are approached for short-term loans by asset-rich, cash-poor businesspeople who borrow against luxury watches, diamond jewellery and prestige cars, although I have had inquiry to borrow against aircraft.
“It’s important to remember people continue to own the asset and are not going into debt, so if they don’t pay it out then they don’t have a bad mark against their credit record, although we do prefer for people to recover their valuables.”
Pawnbank offers an Australia-wide lending service and provides secure storage of all assets loaned against.