How to Use Your Luxury Handbag to Get a Loan
I am a huge fan of buying luxury handbags from pawn shop but not many people know that if you need fast cash, this is the safest and quickest way to take a loan out against your authentic luxury handbag.
I’ve known Sicily for a few years and her company, Diamond Banc and have asked her to write a guest blog post detailing how you can turn that Chanel into quick cash and not lose ownership of it!
Owning luxury handbags is a lot like eating chips; you can’t just have one. However, you may find that there are one or two bags in your collection that don’t get used much but are too sentimentally significant to sell. Did you know that you can get paid for these designer handbags without giving up ownership of the bag?
Use the handbags for collateral for a loan. With an asset-based loan, you can get paid quickly AND keep your bag. This is a really good option if you need funds quickly but don’t want to ultimately sell your handbag. One of the most important factors to consider when you’re looking for a loan on your handbag is finding the right lender. A good lender will offer you immediate payment, competitive rates, and will pay the most for your handbag. It’s also important to find a lender who you can trust. Diamond Banc meets all of the above criteria.
What Is an Asset-Based Loan?
An asset-based loan allows you to borrow funds against the value of a luxury item, whether it’s a handbag, a piece of designer jewelry or a diamond ring. In this case, a luxury handbag. A lender will appraise the item and let you know its liquid value: the amount that the item is worth, in its current condition, based on what a potential buyer would be willing to pay for the item.
From there, the lender will offer the amount they would be willing to loan on the item. This amount is called a loan value. If you choose to accept the loan value, the paperwork is completed and you receive funds immediately. Most importantly, your items will be kept safe in a fully-insured, secure location, until you pay the loan back. Once the loan has been repaid, your bag will be returned to you immediately.
How Does it Work?
Diamond Banc makes the process easy! Start by filling out a simple, no obligation form on our website diamondbanc.com. You can also directly contact me, Sicily! My contact information is provided below. We will then review the information you submitted. We’ll reach out to you the same day to give you an idea of the initial offer for an item. We provide a pre-paid fully insured shipping label. Once we receive your item, we record every package being opened in our secure, private offices. After reviewing, verifying and authenticating the handbag,we’ll contact you with the loan value and loan term options. We email you a link to complete the loan documents. Once those documents are signed, we provide funds immediately. Our clients are funded via wire within 24-48 hours of sending their handbag! Your handbag collateral is stored on site in one of our state-of-the-art, alarm-protected, 24-hour security monitored, fireproof vaults. Your handbag is also fully insured for the full replacement value while in our custody. Diamond Banc also offers automatic payments to ensure a simple payment process.
Is There a Minimum or Maximum Loan Period?
Diamond Banc offers 30-day loans that can be extended for as many 30-day periods as the client needs. There is no minimum loan period, as our loans can be paid off, in full, at any time without penalty. What sets us apart from many of our competitors is the option to pay the loan down in increments as opposed to one lump sum payment. Any amount paid each month above the “monthly rate” will go towards reducing the principal balance therefore reducing your minimum monthly payment. This means our clients can take as little or as long as they need to repay the loan. You have the freedom to structure your monthly payments in any way that best fits your needs and financial situation.
How Do We Determine the Value of Your Handbag?
There are several factors that play a role in evaluating your handbag’s overall market value. These factors can include:
Overall Condition: We can pay more for bags in new or like new condition than we can for a bag with more wear
Popularity or Rarity: Diamond Banc is able to pay more for highly sought after brands and styles.
Original Packaging: Having the original box, dust cover and receipt paperwork can add significantly to the value
Authenticity: We verify all handbags through a verification company, Entrupy, in order to guarantee that a handbag is genuine prior to offering a loan.
Brands we Accept: Chanel, Louis Vuitton, Prada, Hermes, Gucci, Fendi and many more.
**Client’s name has been changed for privacy. Confidentiality is top priority at Diamond Banc.**
Diamond Banc recently provided an Asset-Based Loan on this gorgeous Chanel Jumbo Classic Flap Bag accompanied by the Chanel box, dust cover, Chanel pamphlets and receipt. Sally’s Chanel handbag loan provides a great representation of how the process of obtaining an asset-based loan with Diamond Banc works.
Sally had an unexpected medical expense and needed access to additional funds immediately. She had heard of getting a loan using jewelry items but not a handbag, she had no experience with doing so. Likewise, Sally was uneasy about using her beloved Chanel handbag to get money from a local pawn shop. Fortunately, Sally’s friend had recently shared her personal experience with Diamond Banc when selling some inherited unused jewelry and her Louis Vuitton Keepall. Still hesitant to part with her Chanel, even for a brief time, Sally visited the Diamond Banc website. She was pleased to discover that Diamond Banc accepted designer handbags for their collateral loans.
Timeline of obtaining a loan:
Sally completed an online form on www.diamondbanc.com. She included images and information on the Chanel Classic Flap Bag. Sicily (Our Market Director in Kansas City) contacted Sally within an hour of her online loan request submission, to provide an initial value offer. Sally was very interested, as the initial offer value of $4,000 exceeded the amount she needed for her medical emergency. Sicily emailed Sally a pre-paid fully insured shipping label (with easy instructions) Monday afternoon. By Monday night, Sally had packaged the handbag and shipped the Chanel handbag.
Diamond Banc received the handbag Tuesday morning. Upon its arrival, Sicily filmed the opening of the package and confirmed the authenticity of the handbag. Sicily provided Sally with the loan value offer of up to $4,000. If Sally borrowed $4,000, the monthly cost of funds would be 8% = $320 per month.
Ultimately, Sally only needed to borrow $2,500 to cover the expense of her medical expenses. Since Sally needed to borrow less than the overall loan value of her handbag, Diamond Banc offered to reduce the monthly interest rate. With the loan amount being $2,500, the monthly cost of funds was reduced to 5%, bridging the total fees to only $125/month! Sally accepted the loan amount option of $2,500. Within a few hours of signing the loan documents via email, Sally received the funds wired directly to her checking account.
Sally completed her loan within 3 months and was thrilled when her Chanel handbag arrived back at her home the next day. Sally did not have to go through the long process of obtaining a personal loan through a traditional bank or max out her credit cards to pay her unexpected medical costs. Best of all, Sally knows she can borrow up to $4,000 at any time in the future, using her Chanel handbag in her closet as collateral.
Who Is Diamond Banc?
Diamond Banc is an industry-leader in the luxury lending market. We provide loans on luxury handbags and fine jewelry to customers nationwide. The name Diamond Banc derives from our mission to offer clients the same professionalism and confidentiality of a traditional bank. However, unlike traditional banks Diamond Banc allows clients to turn to their jewelry and designer handbags for their liquidity needs. Whether customers are selling an item or using it as collateral to obtain a loan Diamond Banc offers transparent and fast transaction experience. Diamond Banc integrates both online and offline channels for customers to sell or get a loan on their luxury items. People can process a loan through their website or come into one of our many offices throughout the US. Diamond Banc is unique in the flexibility they offer clients when structuring a loan, in order to meet customer’s personal needs.
Sicily, has been with Diamond Banc and its sister company, Buchroeders, since 2010. As the Market Director of Diamond Banc’s Kansas City location, Sicily helps clients get the most value for their fine jewelry and handbags. She is a GIA Diamonds Graduate, and is working on completing her Graduate Gemologist degree on scholarship. Sicily has over 14 years of experience in luxury retail and has extensive training in luxury watch, designer jewelry and handbag authentication and valuation. Her first designer handbag was a Louis Vouitton Trocadero in monogram Empreinte leather and she can’t wait to purchase her next designer bag, probably a Chanel.
Feel free to contact me if I can assist in any way!