Why a Pawn Loan is better than a Bank Loan for Entrepreneurs

pawn-loan-vs-personal-loan

by Kyla Camille |

Every growing small business needs bridge financing at some point in its lifetime.

This usually happens when the company has liquidity difficulties such as short collections or less money in the bank.

With many options open to entrepreneurs, the best bet would be the one that can accommodate cash emergencies and that would require the least paper work and turnaround time.

In the so called underground economy, many entrepreneurs resort to check discounting — at five percent discount.

Filipino small business owners usually take on a personal loan from either a bank or a pawn shop, as these are the most recognizable lending institutions in the Philippines.

How do they differ from each other?

According to PawnHero.ph, a pawnshop’s core business is making collateral loans where the store offers loans in exchange for something of value. The pawnbroker offers a credit based on the item’s estimated value and keeps it until the loan is paid.

A bank provides personal loans but imposes stricter requirements, usually entailing longer processing time compared to a pawn shop. But the longer wait is offset by the perception that a bank is a safe and reliable lender.

How do you know which one works best for you? That will depend on your financial circumstances and personal priorities, as well the requirements you have readily available. Another major consideration is whether or not you need the cash right this instant or if it can wait a bit later.To help you decide which type of loan to go for, here’s an infographic that gives you details about what to expect from a personal loan from a pawn store vs. bank.

It’s easy to see why pawning is a popular choice among Filipinos, as most citizens don’t even own a bank account. It’s even easier to get the services of a pawnshop today via your mobile devices. There’s no need to trudge to a physical store when you can do your transactions online through PawnHero.

All you need to do is to upload a picture of your valuable/s to get a free loan offer. When you like PawnHero’s offer, your item/s will be picked up from your house or you can drop them in any 2Go branch.

PawnHero only charges a 2.99% flat monthly interest rate — the lowest amongst pawnshops in the Philippines. Also, PawnHero accepts a wide range of items, so it’s so much more convenient nowadays to get fast cash safely and quickly.

About Pawn Hero

PawnHero.ph – the 1st online pawnshop in Southeast Asia, will solve the problem of expensive credit and interest rates. We provide an easy, fair and convenient way of overcoming short-term cash needs. This is a completely new way of doing business in the industry, truly revolutionary, created by genuine visionaries.

Most pawnshops only accept jewelry, not your personal items such as gadgets, electronics, and mobile phones. But at PawnHero, not only can you pawn and sell these items; you can also do so discreetly. Simply go to PawnHero.ph to get started.

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