The Changing Face Of Short Term Loans

Recently described by The Office Of Fair Trade as “just another way of borrowing money”, gone are the days of dodgy backstreet pawn brokers.  Such calls to dispel common misconceptions about pawn broking are being echoed by Loan Purchase, an innovative startup turning the traditional notion of broking on its head. Forget the dusty watches, bicycles and garden furniture filling pawn shops up and down the country, Loan Purchase deal in cars, boats, motorcycles, jet skis and pretty much any other item of value you may have stored in your home, garage or business premises.  

According to new figures, the industry is worth an estimated £100 million a year, with online pawn brokers like Loan Purchase acting as a cash point for the cash strapped but possession rich. From speed boats to JCB diggers, you can loan purchase against almost any item. An acceptable, safe and easy way of securing a short term loan, selling your item and then buying it back is a great way to release liquidity. With banks refusing credit, Loan Purchase has found a niche sector, helping businessmen and entrepreneurs free up their capital by exchanging goods for cash.

Daryl Self, Managing Director of Loan Purchase said, “We are seeing a wider section of society using our services than ever before.  I think, particularly in the current economic squeeze, people are turning away from the orthodox financial channels and looking at other routes to accessing funds.  Traditionally pawn broking has received a bad press however, new twists on this old service are now prevailing as a perfectly normal and very easy route to accessing a quick loan.”

Mr. Self added, “The majority of our customers do buy their property back having sorted out their temporary cash flow problem.  In fact the largest growth area of our business is the entrepreneur- coming in with their shackles for various reasons.  It could be to raise some quick money to put on a deal.  When the deal pays off, they come and buy their item back. The money may help tie them over for a few months. It may have been raised for a pun at the Stock Market, a quick flip on a trading deal or used by those waiting for the sale of their property to be completed.  We’ve even known a tip at the bookies.  We hear different stories all the time.” 

“Today Loan Purchase’s services are as simple as that – an easy way to rectify a temporary cash flow problem”.