In designer-obsessed Hong Kong, keeping up appearances can be hard on the purse. One company has an answer: cash-strapped shoppers can get money quickly by pawning their Gucci, Chanel, Hermès or Louis Vuitton luxury handbags.
Yes Lady Finance, a mortgage brokerage, offers loans within half an hour of up to half of a bag’s new value, with four months to repay at an interest rate of 4 percent.
If the client fails to pay back the loan, the bag is sold by the company’s retail arm, Milan Station Holdings, at one of its second-hand designer stores.
But most people repaid to retrieve their prized possessions, said Byron Yiu, Yes Lady Finance’s chairman and chief executive. One client brought in a crocodile-skin handbag and got a loan for HK$250 000 (R320 000). – Reuters