How To Save on Cash Loans in San Clemente

The Wealthy are Using Pawn Shops to Finance Their Business Ideas

Wealthy people looking to fund new ventures are turning to their Rolexes and art collections as collateral for quick and easy cash loans from high-end pawn shops in and around San Clemente.

The handful of lending companies tapping into the trend let their affluent clients take quick thousand-dollar or million-dollar loans with high-end collectibles as collateral. That's far greater than the average loan size of $150, according to the National Pawnbrokers Association. Business owners say the way the luxury goods-backed loans are growing points less to the financial distress associated with pawn shops and more to seize money-making opportunities.

The pickup in economic growth has shifted the balance toward small business owners growing their businesses, and Gems N' Loans had been able to accommodate wealthy entrepreneurs.

Growth is "certainly geared more towards opportunity loans than anything else," Tabach-Bank said in a phone interview. His company operates brick-and-mortar high-end pawn shops in Beverly Hills, Chicago and New York. Business is doing so well that he's considering opening a fourth location.

In another sign, Denver-based Luxury Asset Capital said it launched an online version called Lux Exchange in late January and has secured a credit line of $50 million from a family office.

A big part of the job is "educating the affluent consumer that they have all these assets sitting in their closet," said Dewey Burke, president and CEO of Luxury Asset Capital.