Lightbank and Internet Pawn Join Forces to Launch Pawngo, the Online Reinvention of the Traditional Pawn Shop

CENTENNIAL, Colo., June 7, 2011 /PRNewswire/ -- Lightbank and online pawnbroker Internet Pawn announced today the two have partnered to launch Pawngo.com, reinventing the traditional pawn shop and offering consumers a more practical and affordable option to credit cards, loans and payday lending to get cash quickly without going into debt.

Backed by $1.5 million in Series B funding from Lightbank, and an additional $800,000 from Series A investors Access Ventures Partners and Daylight Partners, Pawngo leverages Internet Pawn's experience issuing more than $1.3 million in private, secure pawn loans over the Internet, and Lightbank's expertise in building highly scalable, elegant web sites, to create a simple, online version of the brick-and-mortar pawn shop.

"It is said that pawning has existed for over 3,000 years, yet in modern times it has changed very little," said Paul Lee, partner at Lightbank. "Like we have for other antiquated industries, we intend to help the Pawngo team leverage the disruptive forces of the Internet to bring greater transparency, efficiency and massive scalability to the pawn industry."

At Pawngo, anyone can use the gold, jewelry, watches and other valuables they already own as collateral to secure a short-term, low-interest loan without ever leaving the house. As in a traditional pawn shop, users will also have the option to sell their valuables outright for a slightly larger sum and without interest.

"Particularly in today's economy, many people often find themselves in a bind and need short-term capital to overcome some obstacle they're facing," said Todd Hills, co-founder and CEO of Pawngo. "With the investment, support and expertise of Lightbank, we're now able to bring this practical and more affordable financing option to consumers on a broad scale."

Hills notes that while some may view pawning as a last resort or something done only out of desperation, it can be a much more prudent form of borrowing compared to alternatives. "Especially in the current tight credit market, why go into debt and put your financial future at risk with a conventional loan or credit cards?" he said. "Instead, our system lets you use the items you already own to get a loan that won't get you into trouble down the road."

More Practical than a Pawn Shop

Unlike typical pawn shop transactions, Pawngo makes it easy and convenient to get a risk-free, no obligation loan for up to $100,000 with no credit check, all from the privacy and comfort of your own home. Since the process is conducted entirely online, the simple, discreet and transparent Pawngo system eliminates the intimidating feeling walking into a brick-and-mortar pawn shop in a seedy part of town. And, unlike a second mortgage, home equity loan or high-interest payday loan, borrowing through Pawngo helps you avoid getting in over your head.

Pawngo provides loans based on an item's current market value for up to six months at three to six percent interest, a more economical alternative to traditional brick-and-mortar pawn shops that charge up to 20 percent interest per month and only hold your item for 30 days before a payment must be made. At Pawngo, anyone can get a loan ranging from $250 to up to $100,000 in 24 hours, regardless of current financial situation or credit history.

"When you pawn items through Pawngo, you'll never be harassed by a bill collector, and there's no risk of a credit blemish that might follow you for years," Hills said. "And, instead of selling your items on eBay or Craigslist where they're gone forever, with Pawngo you can always get your treasured items back as soon as you pay off the loan."

Financing from Pawngo can help fill gaps in cash flow, pay for emergency purchases like major auto or home repairs or braces for a child, or even finance a new business venture. Once you've paid back the loan, your items are shipped directly back to you quickly and safely.

How it Works

Just visit www.pawngo.com and enter a description of the item(s), a digital image if possible and contact information—no credit details or Social Security Number required. You'll receive a preliminary loan offer or buy estimate within a few hours. The offer is based on the item's current market value determined by real-time and historic pricing data. If you accept the offer, Pawngo lets you automatically print an overnight FedEx shipping label to send the items directly to Pawngo's secure Colorado evaluation lab. Customers may also request a free PawngoPak that includes a box and all the packing materials needed.

Once the item is received, a member of Pawngo's customer support team will contact you with a thorough evaluation and detailed offer. If the offer is accepted, your item is locked in Pawngo's vault and the money is wired immediately and securely to the bank account provided.

Security is Paramount

Pawngo's system provides exceptional security, with shipment of every item by FedEx, the largest shipper of diamonds in the world and the most trusted shipment provider for valuable and rare items. Every item in Pawngo's inventory is fully insured by Lloyds of London from the time it's placed in the FedEx package for shipment. Once received, items are delivered and handled under video surveillance at all times. Each piece is photographed and bar-coded; no item ever leaves the secure premises except for return shipping to the customer, or when sold to another party upon forfeiture.

In addition to offering a better deal and more convenient, discreet service than a local pawn shop, Pawngo also offers customers a level of respect and compassion you won't find in a typical brick-and-mortar shop or your local bank.

"We understand that sometimes things happen, and there's no shame in needing a little help in a tough situation," Hills said. "We work hard to understand your circumstances and work out a deal that helps you overcome short-term obstacles without a long-term commitment or risk."  

For more information, visit www.pawngo.com.

About Pawngo

Pawngo is the Internet's premier online pawning destination that lets anyone take out a short-term, low-interest loan of up to $100,000 using items they already own as collateral. 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. The private company is headquartered in Centennial, Colorado. For more information, visit www.pawngo.com.

About Lightbank

Lightbank is an investment fund focused on early-stage technology companies, including Echo Global Logistics, Innerworkings, MediaBank and Groupon. Lightbank invests money, time and expertise to help innovative businesses achieve dynamic growth. For more information, visit http://www.lightbank.com.

SOURCE Pawngo