Need a little extra cash? Maybe you’re looking for a discreet alternative to visiting the pawnbroker, or you just don’t want to ask a bank for a loan? Whatever the reason, borro’s got you covered. The online, privately held pawnbroker, borro at borro.com, offers loans ranging from $1,000 to $1 million dollars secured against personal assets such as jewelry, fine art, classic cars or even wine collections.
Launched in 2008 in the U.K. by Paul Aitken, borro grew by a dramatic 650 percent within its first six months and “has essentially created a new category of online loans, Personal Asset Lending,” as stated by the online publication Business Wire. While borro transforms the stodgy business of pawnbroking, its stratospheric success can be measured in triple-digit revenue growth for each of the past three years.
Borrowers can get their cash in 24 hours and there are no credit checks; just request a loan online and if the item is small enough, borro will send a packet to your home in which you can mail it to them. The envelope is prepaid and its contents insured. borro’s expert appraisers, whose pedigrees come from the likes of Sotheby’s and Christie’s, will determine the value of your object and the cash will be wired to your account. Interest rates are 4 percent a month, with a 53 percent annual percentage rate, although borro says loans are typically paid back in three months.
If the item is too big, or maybe just too valuable to let out of your hands, for instance, like the drawings by Picasso, the Henry Moore sculpture, or the Ferrari borro secured, the company can send someone to your home for the appraisal or you can make an appointment to visit the office.
Borro just opened shop in the U.S. in February and as of May 17 had reached a milestone of $2 million worth of loans here, according to a company press release.
On Thursday borro announced that it had secured $26 million in a new round of funding led by global venture capital firm, Canaan Partners, and will use the investment to expand its operations in the U.S. and U.K., and broaden its range of products.
“This investment comes at a pivotal time for borro,” said Aitken to Business Wire. “The new funding will allow us to accelerate growth in the U.S. and U.K. as the leading online lending and liquidity marketplace for luxury personal assets.”
The venture capital firm Ribbit Capital, which targets unique individuals and brands “that are on a mission to disrupt financial services globally,” according to its website, also joined in the round. Other investors include Augmentum Capital, European Founders Fund, Eden Ventures and Octopus Investments, which had invested previously.
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