Thu, Oct 30, 2008
my paper
More white collars pawn goods
WHITE-COLLAR executives have become the newest group of pawnshop customers to be hit by the financial turmoil.
Ms Yeah Lee Ching, who runs one of the largest pawnshop chains under ValueMax Group, told my paper that her shops now see more white-collar executives pawning their belongings.
She understands some of them lost money in financial investments.
She said that people who typically get a loan from pawnshops are HDB dwellers. They usually pawn gold ornaments and Rolex watches.
"But white-collar executives pawn high-quality diamond jewellery and other brands of watches, such as Richard Mille and Franck Muller," she said.
Many of them also live in condominiums and houses.
The number of customers at over 90 pawnshops here has risen by about 10 to 20 per cent in the last three months compared to the same period last year, said Ms Yeah, who is also the executive secretary of the Singapore Pawnbrokers' Association.
"As property and stock prices have fallen, more people will need short-term cash to tide them over, possibly due to losses they have made. Pawning is an easy way to obtain ready cash." She explained that, unlike a bank loan, a pawnshop loan is hassle-free and can be given in five minutes.
In contrast to credit-card or bank loans, there is no impact on the customer's credit history if he defaults on the loan after six months, as the pawned item will be publicly auctioned off.
At 1.5 per cent, monthly interest rates for pawnshop loans are also lower than those for credit-card loans and payments, which are over 2 per cent.
On the goods-resale side, Cash Converters saw a 20-per-cent rise in the number of individuals selling items to all its five shops in the past six to eight weeks, compared to the first nine months of this year. More expensive premium watches, gold jewellery and household items were also sold to the second-hand goods store.
"The financial crisis has hit home in the last one to two months, and people are now more concerned about their cashflow," said Mr Jeremy Taylor, its managing director.
He added that Cash Converters "has seen a spike" in the number of buyers for second-hand goods, but "not as dramatic" as the increase in sellers.
He thinks people are spending less extravagantly and becoming bargain-conscious.
"More businesses have also approached us in the last two to three months to sell excess inventories, possibly to maximise their cashflow," he said.
Taxi driver Michael Yeo, 47, who frequents the store twice a week, said: "With the economy slowing now, I'll visit Cash Converters more than retail shops to buy cheaper items."
.
my paper
More white collars pawn goods
WHITE-COLLAR executives have become the newest group of pawnshop customers to be hit by the financial turmoil.
Ms Yeah Lee Ching, who runs one of the largest pawnshop chains under ValueMax Group, told my paper that her shops now see more white-collar executives pawning their belongings.
She understands some of them lost money in financial investments.
She said that people who typically get a loan from pawnshops are HDB dwellers. They usually pawn gold ornaments and Rolex watches.
"But white-collar executives pawn high-quality diamond jewellery and other brands of watches, such as Richard Mille and Franck Muller," she said.
Many of them also live in condominiums and houses.
The number of customers at over 90 pawnshops here has risen by about 10 to 20 per cent in the last three months compared to the same period last year, said Ms Yeah, who is also the executive secretary of the Singapore Pawnbrokers' Association.
"As property and stock prices have fallen, more people will need short-term cash to tide them over, possibly due to losses they have made. Pawning is an easy way to obtain ready cash." She explained that, unlike a bank loan, a pawnshop loan is hassle-free and can be given in five minutes.
In contrast to credit-card or bank loans, there is no impact on the customer's credit history if he defaults on the loan after six months, as the pawned item will be publicly auctioned off.
At 1.5 per cent, monthly interest rates for pawnshop loans are also lower than those for credit-card loans and payments, which are over 2 per cent.
On the goods-resale side, Cash Converters saw a 20-per-cent rise in the number of individuals selling items to all its five shops in the past six to eight weeks, compared to the first nine months of this year. More expensive premium watches, gold jewellery and household items were also sold to the second-hand goods store.
"The financial crisis has hit home in the last one to two months, and people are now more concerned about their cashflow," said Mr Jeremy Taylor, its managing director.
He added that Cash Converters "has seen a spike" in the number of buyers for second-hand goods, but "not as dramatic" as the increase in sellers.
He thinks people are spending less extravagantly and becoming bargain-conscious.
"More businesses have also approached us in the last two to three months to sell excess inventories, possibly to maximise their cashflow," he said.
Taxi driver Michael Yeo, 47, who frequents the store twice a week, said: "With the economy slowing now, I'll visit Cash Converters more than retail shops to buy cheaper items."
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