London-based Borro is the creation of British technology entrepreneur Paul Aitken, who got the idea for an upscale pawnshop after depositors staged a run on Northern Rock Plc in 2007, concerned it would collapse. Until then, the world’s wealthy had been snapping up Bentleys, pink diamonds and loads of expensive watches, often on easy credit. Soon, Aitken figured, folks would be looking to turn those assets back into cash.
Aitken has made loans -- the standard term is six months, but borrowers can request an extension -- against Harry Winston diamond-and-ruby earrings ($315,000), a 2013 BMW M5 ($82,500), a Patek Philippe 5960P ($30,000) and a Salvador Dali watercolor ($20,000). He anticipates revenue of $17 million this year -- almost double 2012’s take -- and expects to be profitable next year.In September, he opened a sleek new office in midtown Manhattan, nine floors down from a smaller, outdated one.To most people, pawnshops imply desperation. Aitken says it’s different at the upper end. Many of his clients are entrepreneurs, entertainers and sports stars. They’re accustomed to booms, busts and -- even more likely -- temporary cash shortages.“People who consume luxury goods are risk takers,” Aitken says.
Kaye chose his Picasso because he didn’t want to haggle over something less recognizable, like, say, his Alexander Calder lithographs.Kaye bet right and got his money in less than a day. He paid his three kids’ tuitions, then went out for a $200 sushi dinner. Kaye says he’s been collecting art for most of his adult life and has never before had to part with a single piece. Because of Borro, he still hasn’t.
So...Loan Takers: Anti-MMMLoan Giver: F-ing brilliant!In my opinion. Seriously he has a nice business idea.
