The Luxury Pawnshop


Most pawnshops cater to people who trade in a necklace or ring for a few bucks to pay a bill or make rent, but in recent years a new trend has emerged. Collateral lenders (a fancy euphemism for luxury pawnshops) cater to typically wealthy, cash-poor clientele who need a quick influx of capital. Often the money is needed to open up a new business or make payroll during a lean month. Loans can range into the tens of thousands or up to a million dollars, and collateral can include things like exotic sports cars, priceless artwork, and the kind of jewelry normal people might only see behind glass at a museum. Interest rates for loans of this caliber are often insane—in the state of Texas, collateral lenders are legally allowed to charge 240 percent a year!


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