If you need to secure a loan, and you have a diamond or other jewelry-based asset you can use as collateral, you can get a diamond loan from a diamond brokerage business. Diamond brokerage businesses are different than pawn shops and are a great alternative to pawning your precious jewelry when you need access to extra cash quickly.
Diamond Brokerage Firms Accept More Than Diamonds
Despite the name, diamond brokerage firms work with more than just diamond. They will accept as collateral a wide range of assets. Most brokerage firms will accept luxury watches and gold in any form, as well as other fine jewelry pieces and precious metals. Most brokerage firms will also consider other high-end items that they can attach a value to. For example, they may accept a designer handbag that is in great condition or a painting that they are able to verify both the value and authenticity from. If you have a high-value item you want to use as collateral for a personal loan, it doesn't hurt to ask to see if they will accept it.
Value Is Based on Based on Wholesale Value
When the jewelry brokerage firm accepts your high-value item, first they will determine the wholesale value of the asset. They will use various professionals and resources to determine an accurate wholesale value of whatever asset you bring in. From there, they will offer you a loan as a direct ratio of the value of the item you brought in. For example, if their loan term was 75% of the wholesale price, and your item was valued at $1,000, they would offer to loan you $750, or 75% of the value of your item. That way, if you don't pay off the loan within the given time frame, and they have to sell your collateral item, they will guarantee that they will make back the money they loaned you as well as make some money on the transaction.
Your Monthly Payment Will Include More Than the Loan
You also need to understand that you will be expected to pay back more than you borrowed. Expect internet to be added to your loan. Additionally, you will be charged for the security and storage of your item. Many firms will also charge you an insurance rate to ensure your high-value item while it is in their possession. The total extra percentage you will pay on your loan is generally not that high. You will be paying a little over the loan cost in order to get back the item you put up for collateral.
If you need a quick loan and have a high-value item to use as collateral, a diamond jewelry brokerage business will provide you with a loan based on the wholesale value of your asset. They will provide you with the loan and you will have to make monthly payments to get back your high-end item.Share