Borro.com (www.borro.com), the UK's online pawnbroker, says it now has loans of £100 to £13,500 to customers in every region of the UK. While many of the UK pawnbrokers are growing at more than 30% a year, Borro.com is growing at three times that rate per month, with loan offers on items ranging from everyday watches and jewelry to antiques, art, sports memorabilia and most recently even a Ferrari.
With the credit crisis severely limiting options for those in need of short-term loans, Borro.com’s online approach is reinventing an age-old industry by offering UK consumers pawn loans of up to £100,000 against valuables they already own – from the comfort and convenience of their home.
Like Ebay, Borro.com uses the Internet to create a UK-wide marketplace making pawnbroking more accessible than ever. Borro.com’s online approach is also discrete, safe and fast – with loans processed in 48 hours -- attracting clients who have never previously considered pawn loans to fund various short-term cash flow needs.
“High street pawnbrokers are very local businesses, and the vast majority of their customers live within a few miles of their high street location. As there are only 950 pawn shops in the UK, this means that until now, the traditional high street pawnbroker has not been accessible or convenient for most people,” explains Paul Aitken, founder and CEO of borro.com. “The fact is 95% of people in the UK have never even considered a pawn loan. Borro.com changes all of that. By creating an online platform for pawn-lending, we are able to service all corners of the UK, which is something no other pawnbroker can claim to do. Remarkably, more than 50% of our customers are new to pawn-lending.”
Recent clients include a 48 year old manager of a seasonal business who secured a loan against a private number plate and Rolex watch to plug a £9,000 gap until she sells her stock; a 38 year old gentleman who has served in the British army who was refused an overdraft from his bank and secured a £300 loan against his medals; and a 42 year old lady who was offered a £1000 loan against a diamond ring to “plug the gap” between paydays for her son’s school trip.
Borro.com loans are processed in 24 to 48 hours by visiting www.borro.com and entering details on the item(s) to borrow against. Borro.com then sends out a pre-paid Royal Mail Special Delivery pack which is then returned via courier to our central London vault. Items are safely stored and fully insured for the duration of the loan. The average loan is £500, but Borro.com offers a discreet home collection service for loans over £5,000 to anywhere in the UK.
With the lower costs of operating online, Borro.com is also able to offer the lowest interest rates in the industry when compared to alternatives such as an unapproved overdraft, or ‘payday loans’ (which can charge as much as 25% interest per month or more). On £1,000 loan, Borro.com charges a monthly interest rate of 4%, which is about the cost of a bank overdraft letter. Interest, however, is not compounded daily or monthly as with credit cards or payday loans, and there are no redemption penalties or credit checks.
“We are a lender, not a retailer,” adds Mr. Aitken. “We are the answer to many who on occasion need to ‘plug a gap’ between paydays or seasonal orders, or to pay for a holiday or school trip. In the event that a customer is unable to repay a loan after six months, we either extend the term or notify them that we will sell the item on their behalf at the best price possible. The proceeds from the sale go directly to the customer, less the loan amount and interest. Our business works because it is a repeat business; 9 out of 10 customers repay their loans and return when the need is there.”
