Pawn Brokers: Gold Financing, Simplified™
Gold jewelry is a bedrock of any pawn business as its intrinsic value means you can be certain of realizing value from the item, whether it be from selling at retail in your store or from refining it. The constant challenge is financing.
If a customer defaults and the jewelry can be sold as is, then you need to finance it while it sits in your display case until a buyer comes along. If you have a surge in new loans, you can often be forced to refine and melt good jewelry in order to finance new loans. A Monetary Metals® gold finance solution can help avoid that loss of value by financing your jewelry inventory.
If a client defaults on jewelry that is broken or out of style, then you need to send it off to be refined. However, in this case you are exposed to a fall in the gold price, which eats into your profit. By funding your expected refining flows with gold financing, you can eliminate this price exposure and assure a profit.
Monetary Metals® gold finance can also free up your capital that is tied up in funding those clients who pay their interest and roll over their loans for months or even years.