If your client needs some quick cash and has a boat lying around, she might be in luck. There’s a new wave of pawn brokers, or collateralized lenders as they prefer to be called, in town.
These lenders cater to the wealthy, reports the New York Times.
How does it work? Your client leaves an item, like a car, Rolex, boat or vacation property, as collateral with the lender. In return, she’ll receive a loan and have to make monthly payments. To get the item back, she must pay off the principal and interest. If she can’t afford to, she can forfeit the item.
Of course, these loans come with high rates — from 12% to upwards of 60% on an annual basis. But if your wealthy client is in a bind, it may be worth considering.
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