NEW YORK–(BUSINESS WIRE) – Prominent online lender Borro Private Finance unexpectedly halted its collateralized lending program this summer after nearly ten years in business. The UK and US based establishment specializes in online pawn shops against valuable assets including works of art, jewelry and watches. The shutdown of its activities by Borro comes almost two years after the company’s withdrawal from the bridging loan market in July 2017.
Borro grabbed the headlines after securing millions of dollars in venture capital and other funding during his tenure in the industry, including $ 112 million in funding from asset management firm Victory. Park Capital. Borro initiated tens of millions of dollars in pawn shops to his clients, who posted their collateral to secure cash loans. Ready to bring the pawn into the tech age, this encouraging sign proved unsuccessful, proving that the online model was untenable in the US and his native UK.
Jordan Tabach-Bank, board member of the National Pawnbrokers Association and CEO of The Loan Companies, a luxury collateral lender that chooses to stay offline, said: “Online lending may seem like the most convenient option. simple for a quick infusion of liquidity, but they delay the process of financing and eventual redemption. ”
Despite the loss of a key player, the collateral lending industry shows no signs of fatigue. According to the National Pawnbrokers Association, more than 30 million pawnbrokers use the services of US collateral lenders each year.
The immediacy and convenience of pawnshop has consolidated its value within the physical ecosystem and established collateral lending as one of the only industries that has been unable to make the transition to an online marketplace. Tabach-Bank explains, “Our clients appreciate the personal touch of a face-to-face loan, especially when they entrust us with safeguarding their most precious and cherished personal assets. Online lending may be dead, but the pawn industry shows no signs of losing power. ”
About loan companies
Loan companies includes Beverly Loan Company, Chicago Loan Company and New York Loan Company, and has been family owned since 1881. They buy and lend against luxury goods such as gold and diamond jewelry, high end watches, fine auction worthy arts, collectibles, handbags and unique memorabilia. Visit https://www.theloancompanies.com for more information.