Daily Tribune‘Credit history is an important part of most banks’ loan application process. Without a credit history, a borrower has little to no chance of getting approved for a bank loan.’
PawnHero — a BSP-regulated online pawn shop — takes a different approach. | photograph courtesy of PawnHero
With the holidays just around the corner, many small business owners are looking forward to seeing a rise in revenue.
There's a clear trend in the US of people turning to pawnshops at yearend to get extra cash for their Christmas spending. However, even small business owners must deal with seasonal financing challenges to cope with increased demand and costs.
In the Philippines, businesses are required to provide 13th month pay, which means small business owners must manage their cash flow well and find immediate financing to succeed.
For small businesses that need money quickly, owners can turn to pawning for quick and flexible financing at this time. Here are some reasons why pawning can be a viable financing option for small business owners this holiday season:
Pawning provides quick access to cash
Unlike bank loans that may take weeks to get approval for, pawnshops can offer fast and easy access to cash, with most even getting approved within the day.
Such quick timing can be crucial for small businesses that need immediate funds to keep up with the increased demand and costs of the busy holiday season.
Pawning does not require a credit history
Credit history is an important part of most banks' loan application process. Without a credit history, a borrower has little to no chance of getting approved for a bank loan.
PawnHero — a BSP-regulated online pawn shop — takes a different approach. With PawnHero, all you need is proof of income to use their services. As for the loan amount, it's based on the value of the item to be pawned. This makes it easier for borrowers, especially small business owners, to have cash on hand instantly.
Pawning has lower interest rates than bank loans
In contrast to banks' interest rates, pawnshop interest rates are often lower and friendlier to borrowers, making them a more affordable option for small businesses.
