Borro: More borrowers using pawnbroking

Wednesday, 18 February 2009 12:00

Online pawnbroking is moving into mainstream territory as borrowing from banks and building societies becomes more difficult.

That is according to Borro.com, the online pawnbroker, which is reporting a "sharp increase" in the numbers of both prime and subprime borrowers using the service.

The firm, which launched in July 2008, said 75 per cent of its clients were completely new to pawnbroking and the average loan was around £800. This was typically borrowed for three months and secured with an asset worth around £2,000.

Paul Aitken, chief executive and founder of Borro, said: "The bottom line is it's now virtually impossible to get a guaranteed loan on the high street these days.

"Borro changes all of that. We are increasingly plugging credit gaps for prime and sub-prime consumers alike."

He added: "As a result we are becoming more and more mainstream every day."

On a £1,000 loan, Borro charges monthly interest of four per cent. It usually takes between 24 and 48 hours to process a loan.

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