Who Funds Pawn?
Discussion
What amazes me with Posh Pawn is the low values people will sell stuff for, and you never find out an items true value, just the items value that the end customer gets (when he buys the asset not when loaning against it). Why would you SELL to a pawnbroker at a ridiculously low value?
Mr Overheads said:
What amazes me with Posh Pawn is the low values people will sell stuff for, and you never find out an items true value, just the items value that the end customer gets (when he buys the asset not when loaning against it). Why would you SELL to a pawnbroker at a ridiculously low value?
In an illiquid market, if you need to sell something quickly the price will be low. They are also paying out the cash immediately. Mr Overheads said:
What amazes me with Posh Pawn is the low values people will sell stuff for, and you never find out an items true value, just the items value that the end customer gets (when he buys the asset not when loaning against it). Why would you SELL to a pawnbroker at a ridiculously low value?
Because you get the money quickly, without all the hassle of trying to sell it yourself. Most of the prices are not ridiculously low, they are trade prices and they then sell it on either at market value through their own shops or send it to auction.Prestige Pawn have got an online shop, if you wanted to see how much they advertise some of their items for.
uber said:
Was watching the catchup off that posh pawn. The chap seems to have opened a few stores and build a pretty big business in a couple of years. The question is, if he's sticking out hundreds of thousands on long term loans who funds it all? It cant all be cash flow can it?
I think he sold his property development company to initially fund it but he did say at the end of one of the series that he was talking to his investors about expansion etcMy understanding is that you could sell for example an orange Elise to a pawnbroker for 15k and have the cash but you also have the option to buy it back within a set time frame. If you like your car/handbag/submarine or whatever when your cashflow eases you can buy it back (for a fee) or if you walk away thats when the pawnbroker gets the item for the "buy" price. This aspect of pawnbroking isnt really stressed too much on that show its more like a posh Arfur Dailey buying and selling stuff.
Like the guy with the Porsche the other week anyone with half a brain would just ring a Porsche specialist up with a car like that. Pawnbroking would only be an option if you wanted to have access to buy it back again at some agreed point.
Like the guy with the Porsche the other week anyone with half a brain would just ring a Porsche specialist up with a car like that. Pawnbroking would only be an option if you wanted to have access to buy it back again at some agreed point.
The accounts show him as the only director and shareholder, I wonder if some of the mega high ticket items are "pre purchased" by specialised dealers who fund the loan in return for getting the car at cost + premium or if returned a % of the interest collected. He seemed to have a shed full of supercars which unless on short loans would quickly eat inot cas reserves .
smashie said:
He has had successful businesses in the past and the proceeds from the sale of those has been put into this business. He does also have investors. On another note, he's a top bloke. Ok I may be biased on this one as I am related to him.
comes across as a good bloke. I'd have a beer with him or do business with him.Gassing Station | Business | Top of Page | What's New | My Stuff