webwiz
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Post by webwiz on Mar 24, 2015 15:51:43 GMT
I understand that if a borrower defaults then MT will repay the loan & interest and take on the job of disposing of the asset, so defaults are not really our concern, but if it is not commercially sensitive I would be interested to know how many borrowers actually pay off the loan and reclaim their security.
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Post by MoneyThing on Mar 24, 2015 16:17:34 GMT
I understand that if a borrower defaults then MT will repay the loan & interest and take on the job of disposing of the asset, so defaults are not really our concern, but if it is not commercially sensitive I would be interested to know how many borrowers actually pay off the loan and reclaim their security. Afternoon webwiz. We are a little too young as a company to ascertain our own rate as we have yet to experience a default. However, citing the National Pawnbroking Association (NPA) data the industry average is a 15% default rate. For your interest, other interesting facts & figures on the industry (again citing the NPA): - There are now 2,000 pawnbrokers in the UK operating in a market valued at £930m. - The average loan from a pawnbroker is around £400. - Whilst only 3% of people use a pawnbroker a further 27% are extremely interested once they understand the process.(NPA Research 2013) - 71% of customers are loyal to one pawnbroker. This is often within short proximity to home. - The most popular pawn item is gold rings. Kind regards, Ed
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webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Mar 25, 2015 18:33:07 GMT
If and when you get your first defaults would you consider offering the assets to your MT clients?
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Post by MoneyThing on Mar 25, 2015 19:06:38 GMT
If and when you get your first defaults would you consider offering the assets to your MT clients? Evening webwiz, We are required to obtain a fair market disposal value on the asset (bearing in mind that we would look to undertake this quite quickly), before returning any surplus back to the borrower after deduction of any disposal costs & accrued interest. However, should MT clients be interested in any of the assets please drop us an email and we will be happy to keep your note on file and then notify you in the event of default and offer you the asset based on the fair market value. Kind regards, Ed
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webwiz
Posts: 1,133
Likes: 210
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Post by webwiz on Mar 28, 2015 17:37:46 GMT
Fair market value is what someone is prepared to pay. Perhaps you could get the best offer from your normal routes and then ask us if anyone is interested in topping that. But let's hope that the question does arise for a long time.
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Post by MoneyThing on Mar 28, 2015 19:15:23 GMT
Fair market value is what someone is prepared to pay. Perhaps you could get the best offer from your normal routes and then ask us if anyone is interested in topping that. But let's hope that the question does arise for a long time. Certainly. Regards, Ed.
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