Tag Archives: What is a Pawn Loan and Why is it The Right Option for Me?

What is a Pawn Loan and Why is it The Right Option for Me?

Due to popular TV shows bringing the pawn business into the spotlight, more people than ever before are curious about collateral lenders and their businesses. Pawn loans can be confusing and somewhat intimidating to those who have never had a collateral lending experience before, and New York Loan would like to help answer common questions.

A pawn loan is a non-recourse loan that is based entirely on collateral.  New York Loan will not perform a credit check, request employment verification, or review past defaults. This means that the transaction will never affect a borrower’s livelihood, and there is no chance of being sent to collections if the borrower chooses to default.

The 4 month loans are regulated by federal, state and local law, and there is always an option to extend if a borrower requires more time to pay the loan in full and redeem. At New York Loan Company over 90% of clients redeem their items, but for the small percentage that choose not to pay back the loan – the only loss is the pawned collateral.

Why is pawning so popular?  For those who need a quick infusion of cash, making a pawn loan is a safe and convenient way to obtain the money you need without involving a bank or a broker. At New York Loan most clients leave our private offices with cash in hand usually in under an hour – and they can rest-assured that their collateral is safe in vaulted security until they return to retrieve it. 

There are many clients that take out collateral loans instead of selling for sentimental reasons. Many times people will pawn their engagement rings, wedding rings, watches that were passed down through family, or jewelry that was purchased for a special occasion. These items invoke very personal feelings, and selling outright is just not an option – which is why short term pawn loans on these items is the smart alternative. 

New York Loan employs GIA trained Graduate Gemologists to evaluate jewelry and diamonds, and the expertise of their loan officers is why New York Loan Company and its sister store Beverly Loan Company remain popular with the media and maintain a loyal clientele. With over 76 years in business the company is familiar with signed jewelry, diamonds, watches, art and memorabilia, and its loan officers are prepared to make strong offers, whether for a pawn loan or outright purchase. 

Being comfortable with your lender is a big part of the loan process – New York Loan is a member of the National Pawnbrokers Association, and Jordan Tabach-Bank, the owner of New York Loan and Beverly Loan, sits on the board of directors. The company is also deeply involved with the Collateral Loanbrokers Association of New York, and has an A+ rating with the Better Business Bureau.

Deciding to pawn can be a difficult decision, New York Loan is happy to answer any question you may have about the loan process. You can call 212-997-5626, email info@newyorkloan.com, or chat on their website newyorkloan.com for more information.