Finance News

Wealthy People Need Loans Too According to Pawnbroker

Wealthy people in the UK need loans too according to Borro, which is a pawnbroker aimed at wealthier clientele. The company claims that the UK’s wealthy are being forced to borrow using short term loans secured by their valuable assets to fund their businesses and lifestyles.
Some may ask that if these people are wealthy, why they would need to borrow. It could just be that in the double dip recession even they are feeling the pinch and are struggling to maintain their affluent lifestyles. It is far easier to hope that a current shortage in money is a temporary issue and pawning an item is a short term finance solution.
Borro revealed that loans by the company of over £20,000 have risen by 46% in the last year and a half. It says that the loans are funding every from property and business deals to paying for school fees and holidays. It also says that the average size of a loan has risen by 525% to £5,000 in the first 3 months of 2012. In 2010 the average loan was just £800.
Paul Aitken, CEO of borro said: ‘Against the current economic backdrop, we have seen an increasing number of high net worth individuals and small business owners using their assets to help support them financially. This is why we have seen the average loan size taken out by people jump by 42% to £5,000, and we anticipate that this will increase further before the end of the year.’
Items that people have pawned include valuable assets such as luxury cars, yachts, jewellery, antiques and fine art, which the company holds on to until the loan is repaid. This takes on average 4-5 months.