Original article found on cnbc.com
Need to trade in that impulse-purchased Cartier Calibre steel and gold two-tone watch for some fast cash? No problem.
Online pawn shop Borro allows people to turn in their prized possessions like luxury watches or even cars for quick cash. The start-up accepts items worth at least $5,000 and returns them upon being paid back plus interest.
Founder Paul Aitken told CNBC the company had revenues of $17 million last year and is expecting to exceed $30 million this year.
It is also raising new funds through the platform OurCrowd. Borro and OurCrowd just announced the largest equity crowdfunding round at more than $6 million dollars raised, with another round of funding coming from institutional investors led by Canaan, Eden and Augmentum.
But why would the wealthy need a pawn shop?
“They need liquidity quickly, they’ve probably got regular cash flows, so more traditional forms of lending aren’t an option, so they fall into asset-backed lending,” Aitken said in an interview with “Power Lunch.”
Aitken said his service primarily targets the top 5 to 10 percent of the population, as they tend to be mass affluent and border on the lower end of high net worth people—many of them business owners and very entrepreneurial.