BEVERLY HILLS, Calif., Jan. 6, 2015 /PRNewswire/ – Jordan Tabach-Bank, CEO of two luxury pawn shops, Beverly Loan Companyand New York Loan Company, anticipates a record-setting year for asset-based lenders focused on high-end items, particularlydiamond jewelry and fine watches.
“Our business has records dating back to the 1930s and pawn loans have become a mainstream financing option for the asset rich, but liquidity challenged,” said Tabach-Bank. “Historically, pawnbrokers were perceived as lenders of last resort for people with trouble meeting their personal expenses, but today our clients on both coasts often borrow against their goods in order to take advantage of positive investment opportunities that require immediate cash. The increase in pawn loans collateralized by luxury items is the result of a perfect storm of events in recent years: elevated gold prices have greatly increased the value of collateral, television shows such as Pawn Stars have reintroduced the concept of pawn into the public consciousness and removed some of the old-fashioned stigma, and dysfunctional traditional credit markets have made pawn loans a viable option for even the most discerning borrower. These factors are all likely to continue to pay dividends to pawnbrokers in 2015.”
Global investment management firm Pimco, which manages $1.87 trillion in assets, recently issued a bullish outlook on the U.S. economy in 2015, “reflecting improving household finances and confidence as well as increasing evidence that the economic recovery is becoming self-sustaining and broad-based.” On the other hand, David Levy, chairman of the renowned Levy Forecasting Center offers an opposing view, stating that “clearly the direction of most of the recent global economic news suggests movement toward a 2015 downturn.” Tabach-Bank states, “If the economy continues to grow, we’ll see more investors seeking to tap into the equity they have stored in their luxury assets, and, conversely, if there is a retraction we will see more clients seeking an avenue to bridge their expenses.”
While analysts differ on the course of the broader US economy in 2015, there is little debate with respect to luxury goods; market research company Euromonitor International expects global luxury sales to grow 19% to reach $405 billion by 2019. Tabach-Bank indicates that high income individuals are not only continuing to purchase luxury items, but they are also more frequently utilizing pawn loans to access liquidity.
Tabach-Bank explains, “Qualifying for a bank loan is challenging for anyone in today’s economy and that is not expected to change, which is why our clients are always amazed that they can receive a confidential, non-recourse collateral loan against their diamond ring, Patek Philippe watch, or Warhol drawing in a matter of minutes and walk out of our discreet offices with cash in hand.”
Beverly Loan Company based in Beverly Hills, CA and New York Loan Company based in New York City, NY are high-end collateral lenders that specialize in large pawn loans against jewelry, diamonds, watches, coins, fine art, wine and memorabilia.
Alison Daley, Public Relations
Phone: 212-361-0691 x5
SOURCE Jordan Tabach-Bank