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Peer-to-peer pawnbroking
A new peer-to-peer company has launched called FundingSecure (not to be confused with Funding Secured) and this allows individuals to pawn assets to obtain a loan. Here is what they say:
FundingSecure introduces savers who wish to achieve a high return with borrowers who wish to take out short-term loans using their assets as security. FundingSecure provides an alternative way of lending providing security to savers and cheaper and faster loans to borrowers.
There are pawnbrokers around on every high street, but FundingSecure are the first peer-to-peer company to offer this service. From the lenders perspective, this is not too dissimilar to existing P2P companies, except their funds are secured against an asset (valued at more than the loan), meaning that bad debt should be low. There is currently a special offer of 0% fees for the first 12 months for new lenders.
This entry was posted on July 3rd, 2013 at 11:09:00 am by easteregg and is filed under News.
Tags: funding secured, fundingsecure
2 comments
I'm a big fan of Peer-to-Peer Lending, but Peer-to-Peer pawnbroking doesn't make a lot of sense to me. The best part of Peer-to-Peer Lending is the superior, Prime credit. Dealing in Pawnbroking includes subprime credit and lots of collections - not something that Peer-to-Peer is set up to do well. 
Hi. I believe peer to peer lending can be adapted to many forms of borrowing, pawnbroking being one of them. It is subprime credit, I will agree. However, we take control of the asset, i.e, it is transported by us, professionally valued by our experts and stored in our secure units. So there’s no real collection process other than auctioning the asset. Pawnbroking is another form of a secure loan which protects savers’ investments and earns them a decent return. Presently our borrowers are setting interest rates for savers between 10%-13%. And with zero fees being charged by us, we think that’s a good return. 
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