Company Seeks to Revolutionize Pawn Industry by Offering the First Web-Based Pawn Shop in the United States

DENVER–(BUSINESS WIRE)–As a result of the economic downturn, a large segment of the population is unable to access credit. Internet Pawn, a new online pawn service launched today by founders with more than two decades’ experience in the pawn industry, provides consumers a unique opportunity to discreetly leverage the equity they have in their personal valuables to solve immediate cash flow needs. Internet Pawn:

•Provides loans based on the collateral of customers’ personal valuables – customers do not have to sell sentimental assets or valuables in order to receive cash
•Requires no credit checks or proof of employment to obtain a loan, given the collateral-backed loan agreement
•Offers cash quickly with no payments required for six months and gives customers the option for credit without negative consequences to their credit scores
•Guarantees premium loan amounts based on proprietary valuation technology and decades of industry experience
•Returns excess sales proceeds to the original owner
•Uses the latest in security standards, and partners with such industry leaders as Wells Fargo, Equifax, Verisign, Westec and PawnGuard, so consumers can trust their assets and personal information are safe and secure
“Internet Pawn puts a whole new twist on the concept of pawn loans, making pawn more attractive, affordable and convenient to a broader group of customers,” said Todd Hills, co-founder, president and CEO of Internet Pawn. “Internet Pawn is ideal for anyone with a valued personal asset and a temporary cash flow need. This can be someone who can’t rectify a financial challenge in 30 to 90 days, but will be in a different financial position in six months to one year; entrepreneurs without access to lines of credit; customers who have extended their credit over the past few years or anyone experiencing an unexpected household emergency.”

“Internet Pawn derives revenue from the interest rate of our loans. It is our goal to return 100 percent of the items used as collateral to our customers,” said Jim McHose, Internet Pawn’s co-founder and CFO. “Our terms allow consumers time to get on their feet financially using valuables they might otherwise have to sell so that they can repay their loan. If they opt not to repay and we sell their item, we return excess proceeds from the sale to the consumer.”

Internet Pawn will lend against any item made with precious metals, which includes almost all jewelry (rings, bracelets, necklaces, earrings, chains, class rings, cuff links, etc.), gold or silver bars or coins. The company also lends against heirlooms, watches, precious stones, collectibles and artwork. Loan transactions can range from $500 to $100,000, but the typical loan amount ranges from $1,000 to $5,000.

How Internet Pawn Works

Internet Pawn designed a process that is convenient, secure, simple and fair for the consumer. Through an online transaction, customers can obtain asset-based cash loans within 24 hours. The process includes an online application, evaluation and verification of merchandise and shipment through FedEx.

Through e-mail and phone conversations with customers in English or Spanish, Internet Pawn determines if collateral items have enough value to warrant a requested loan. If so, customers ship items to Internet Pawn’s secure location through FedEx. Once Internet Pawn receives the item, the company secures that item in its vault and delivers the loan proceeds to the user. Internet Pawn uses the latest in security standards throughout the process, including recording of all employee interactions with an item via video surveillance. When a loan is repaid, the item is returned. If a customer chooses not to repay the loan and forfeits the merchandise for sale, Internet Pawn will sell it and return excess proceeds to the customer.

Loans are remitted electronically directly to a bank account, or if a customer chooses, Internet Pawn can mail or ship a check overnight. After a loan is made, customers have six months to decide if they would like to repay the loan, extend the loan or not repay the loan. The standard loan term is 180 days, which is roughly six months. Loans can be extended if a customer chooses and can be repaid anytime.

About Internet Pawn

Internet Pawn is the first Web-based pawn shop in the United States. As such, it is revolutionizing a 3,000-year-old industry by guaranteeing secure, confidential, asset-based loans with consumer-friendly rates and terms online. Unlike other online lenders, Internet Pawn offers loans based on the collateral of customers’ personal valuables. The company offers cash quickly with no payments for six months. A member of the National Pawnbrokers Association, Internet Pawn guarantees a premium value based on its experience and proprietary valuation technology, and all transactions are conducted from the privacy of the customer’s home. For more information, go to www.internetpawn.com.

Tags: consumer credit, Credit Crunch, Internet Pawn, Pawn Loans, pawnbroker, pawnshop