Jewellery appraisals tend to be higher

Chris became a stockbroker two years ago. With only commissions to rely on, he finds his income sometimes comes up short.

“I didn’t want to apply for a bank loan and give my financials,” he said. “And I didn’t want to go to a payday loan outlet.”

One day, he found a new source of financing. He could use family jewellery to get emergency cash.

Pawnshops have been around for years, but they don’t have a great image. If you want to try something new, you can use an online pawnbroker.

Chris (who prefers not to use his last name) owned some jewellery items that would work as collateral for a loan. He spotted an online pawnbroker called Zillidy when doing a search.

“I called first and asked questions. I was concerned about putting up jewellery that had been in the family for years, such as my wife’s engagement ring, my anniversary bracelet and my school ring,” he told me.

Steven Uster started Zillidy to give access to short-term collateral-based loans to individuals and small-business owners.Want to learn how to make fabric flowers or looking for some crafty inspiration?Check out our Military goggles and protective eyewear.

“There are a zillion reasons to use this service and it is zippity quick,” he says about the company’s name, which some find hard to pronounce.

With a Wharton School business degree, he was looking for an idea after working in New York and moving back to Toronto last year. He saw the growth of online pawnbrokers in the United States and Britain (such as Pawngo and Borro) and felt something was needed in Canada.

Uster told Chris that his items would have to be appraised before his loan was approved. Zillidy sends customers a prepaid FedEx shipping label in order to send their jewellery to his warehouse.

Chris was disappointed with the assessed value of $4,Find a wide range of stainless steel necklace Jewellery to buy online000. His wife’s engagement ring had been appraised as worth $4,000 on its own.How to Make Your Own Bobblehead Doll make your own bobblehead is a fun and simple craft for young children.

Jewellery appraisals tend to be higher when done for insurance than for resale, Uster explained. Insurance appraisers look at replacement cost.

“We’re on the opposite side of the transaction. We have to sell the item, not replace it.Search our Eyeglasses frame catalog for designer frames.”

Chris paid 2.9 per cent monthly interest for a $4,000 loan — or $232 in total when his jewellery was shipped back after two months. (Zillidy doesn’t use compound interest, as other lenders do.)

While 34.8 per cent annual interest is pretty steep — almost twice the rate of a typical credit card — Zillidy fulfils a need for those who want quick cash with no credit checks or income statements required.

What if the borrower can’t repay the loan? About 10 to 15 per cent of loans go into default, according to industry statistics. This means the lender sells the jewellery and gives the proceeds to the borrower.

Zillidy’s loans start at $1,000 and go up to $500,000. This compares with an average pawnshop loan of $80 and average payday loan of more than $200.

His biggest loan so far was $80,000. It went to an entrepreneur who owned several franchise operations and wanted to buy a few more, using jewellery he had collected for years as collateral.

“It was really cool stuff,” Uster said about the gemstones, which included a rare Alexandrite (named after a 19th-century Russian czar), which is green in the daylight and changes to red in the light of a lamp or candle flame.

Chris was happy to get his family treasures returned to him a few days after repaying the loan. Would he use the service again?

“Yes, I found it very flexible if you find yourself in a tight position,” he said. “I’d use it as a last resort and I’d tell others to use it if they have exhausted all other resources.”