Some people may encounter very short term cash flow problem. It simply does not mean that those people do not have wealth. It is just that they have cash flow problem, which may recover very quickly when their cash inflow improves. It might be due to a delay in collections from the big customers, or inventories stuck in customs, or an unexpected huge margin opportunity which may require cash upfront.

In these situations, in order not to disrupt the normal operation or the credit rating of the businesses, the applicant can use their assets as charged or pawned assets. These assets can be redeemed immediately upon full settlement of the loan. This would avoid applicants needing to sell their assets just for a temporary cash flow needs. You can merely obtain a pawn loan from us.

Pawn loan is another alternative for businesses to obtain loan, which is more direct and straight forward, as compared to business loan, start up loan or SME loan. Pawn loan do not need to refer much to the history of the company as well as the credit rating of the company. The market value of the assets being charged should sufficiently cover the pawn loan amount.

Liquidating an asset, any assets from valuables like jewellery to property titles, would most probably incur some slight losses if it is urgently sold, and may also incur unnecessary transaction costs of selling and then buying back the same assets. With our pawn loan, you can easily get a quick loan approved and released immediately once you hand over the valuables or assets. This would save the processing time of checking on your credit profile and repayment records as well as assessment by our credit officer.

However, pawn loan is certainly not an avenue for selling off the valuables, it is merely an avenue for pawning the assets at a portion of its market value, to obtain quick cash, with the intention to fully redeem the valuables once you fully repay the loan. With this in mind, the margin given for pawn loan is between 40%-70%. This is to deter people from treating this as a platform to sell the assets.

Pawn loan includes getting quick cash loan in exchange for handing over valuables such as gold, jewelleries, diamonds, branded watches, branded handbags, smartphones,  or larger value assets such as land titles or properties.

Process of applying for pawn loan

For valuables other than large value assets, the process is quite simple.

  1. Just need to take picture of the valuables, and send details of the valuables, such as date of purchase, original purchase price, proof of ownership and any other relevant details that might affect the market value of the valuable.
  2. Our credit team will call you back for a few verification questions, and give you an estimated loan amount to be approved based on pictures of the valuables.
  3. If you are acceptable to the loan amount and terms of the pawn loan, we will arrange to meet up to collect the valuables, as well as to handover the cash loan.

For larger value assets such as land titles or properties title, the process is slightly longer, and will include signing of a few agreements. All these are handled by the lawyers to protect benefits from both parties, as the assets involved larger value assets. What it means is also that the applicant will sign a supposedly Sales and Purchase Agreements, which would state the selling price of the assets includes 2 portion, the first portion being loan amount being paid to applicant as downpayment, and remaining amount is the amount outstanding with the bank. If the loan is fully settled, the SPA would not be executed (meaning paying the stamp duty for the SPA), and hence you will redeem the assets. However, if the loan is defaulted, the licensed money lender has the right to execute the SPA by paying the stamp duty. In this scenario, the assets would be transferred to the loan provider.

For more clarification, please call us to enquire. The process might differ from case to case, as it may depend on our assessment of the valuables or assets, as well as the re-saleability of the assets in case of default. Hence, it is always easier to call or drop us an email to enquire, together with your documents, if available.

You may also interested to know more about personal loan? Call +6011-2930 9300 or email info@fastcashloanmalaysia.com for more info now!