A Rare Brick & Mortar Victory in the 21st Century, According to The Loan Companies
NEW YORK–(BUSINESS WIRE)–#fineart–Prominent online lender Borro Private Finance unexpectedly ceased its collateral-based lending program this summer after nearly ten years of business. The UK-US-based establishment specialized in online pawn loans against valuable assets, including fine art, jewelry, and watches. Borro’s discontinuation of its operations comes nearly two years after the company’s withdrawal from the bridge loan market in July 2017.
Borro made headlines after obtaining millions in venture capital and other financing over the course of its tenure in the industry, including $112 million in financing from asset management firm Victory Park Capital. Borro initiated tens of millions of dollars in pawn loans to its clients, who mailed in their collateral to secure cash loans. Poised to transition pawn into the era of technology, this encouraging harbinger proved unsuccessful, demonstrating the online model as untenable stateside and in its native UK.
Jordan Tabach-Bank, a board member of the National Pawnbrokers Association and CEO of The Loan Companies, a luxury collateral lender that chooses to stay offline, said, “Online loans may seem like the easiest option for a quick cash infusion, but they delay both the funding and eventual redemption processes.”
Notwithstanding the loss of a key player, the collateral lending industry shows no signs of tiring. According to the National Pawnbrokers Association, more than 30 million pawnshop customers use the services of America’s collateral lenders every year.
The immediacy and convenience of pawn loans has cemented its value within the brick-and-mortar eco-system and established collateral lending as one of the only industries that has been unable to transition into an online marketplace. Tabach-Bank explains, “Our clients like the personal touch of a face-to-face loan, particularly when entrusting us to safeguard their most precious and expensive personal possessions. Online lending may be dead, but the pawn industry shows no signs of losing power.”
About The Loan Companies
The Loan Companies includes Beverly Loan Company, Chicago Loan Company and New York Loan Company, and has been family-owned and operated since 1881. They purchase and lend against luxury goods such as gold and diamond jewelry, high-end watches, auction worthy fine art, collectible handbags and one-of-a-kind memorabilia. Visit https://www.theloancompanies.com for more information.
Eleanor Walper, Director of Marketing