Pawngo Serves The "S" In "SMB"
PAWNGO Announces a Dedicated Loan Desk for the Small Business Owner
NEW YORK and DENVER, Aug. 14, 2013 /PRNewswire/ -- Launched in 2011, Pawngo, the first and leading online pawn lender in the United States announced a program specially designed to serve the small business owner. Venture-backed by Daylight Partners, Access Venture Partners and Lightbank (the $100 million dollar fund that was started by the founders of Groupon), Pawngo has the resources to nimbly serve the small business.
Pawngo enables individuals to borrow money quickly and with no credit check by pledging an asset as collateral for a loan rather than undertaking a lengthy, invasive and inconvenient loan application process at traditional banks or online lenders. Pawngo specializes in providing loans, which are collateralized by a wide variety of easily shippable valuables as jewelry, watches and collectibles.
According to the U.S. Small Business Administration, there are 23 million small businesses in the United States today. The typical small business employs less than 10 people and generates between $250k and $1 million of annual revenues. Often, small business owners and their businesses become one and the same with a large overlap in expenses, revenue and financial stress. Many small business owners have expressed concern over their ability to tap traditional sources of capital like banks to meet their cash flow needs.
Pawngo's service is ideally suited for small business owners who need quick, temporary access to a few thousand dollars. According to a survey by the National Small Business Association, nearly half (43 percent) of small business respondents said that, in the last four years, they needed funds and were unable to find willing sources from loans, credit cards, or investors. Pawngo has made nearly 1,000 loans to small businesses, at an average of $8,373 per loan – with each of these loans collateralized by personal assets such as jewelry and precious metals. Although this dedicated service is new, nearly 40% of small business owners have come back to Pawngo later for follow on lending, reflecting the attractive terms and convenience of the service.
Pawngo's loan process can be completed from the privacy of home or office; customers apply online and then FedEx their valuables to Pawngo free of charge with a full insurance guarantee. Once the items are received, a short electronic contract is executed and funds are deposited directly into the customer's bank account. The entire process can be completed in two business days.
Todd Hills, founder of Pawngo has seen the pawn industry rapidly change from the traditional brick and mortar shops to the digital landscape over his 25 prior years in the industry. Since launch, Pawngo has processed over 4,000 loans totaling $8.4 million.
"I'm pleased with the success that Pawngo has seen in recent years and I expect us to continue our tremendous upward growth. As we go on with revolutionizing this 3,000 year old industry, I want to make a long term commitment to the small business owners that are no longer able to obtain traditional bank loans," said Hills. "We believe Pawngo provides a platform to help small business owners at a critical time when cash flow is needed quickly. We will continue to make upgrades and changes to the platform based on our client's experience and feedback. "
Pawngo is the first full-service online pawn lender in the US and allows individuals immediate access to the cash they need for life's countless unexpected moments without leaving the comfort of their homes. The secure, discreet online process eliminates the embarrassment and hassle of going to a brick-and-mortar pawn shop by enabling consumers to conduct the entire transaction from the privacy and convenience of their own home.
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