First month’s interest waived on all short-term loans in a bid to help those most challenged by the credit crunch
Online PR News – 20-January-2009 – – LONDON, 1st January 2009 - Borro.com (www.borro.com), the UK’s leading online pawnbroker, is waiving the first month’s interest on all new short-term loans made before 31st January 2009.
With many of us having thrown caution to wind over the past few weeks with the lure of the pre-Christmas sales and the festivities themselves, January is set to bring a time of reckoning for all as the cost of Christmas is added up, together with the long wait for the pay packet at the end of the month.
However, using the services of a pawnbroker - often referred to as a ‘visit to uncle’ is fast making a comeback and set to help ease the damage caused to the wallets of those who are finding it difficult to secure credit elsewhere. With banks and credit card companies closing their doors, the credit-challenged can do a lot worse than adopt a new ‘uncle’ who will help ease the financial pressures.
Borro.com, the UK’s leading online pawnbroker, is bringing this ‘old as the hills’ service into the 21st Century. The company believes it has the potential to do what eBay did for selling second hand goods, and become a mainstream service for people to arrange short term loans, easily and discreetly, secured by the value of goods they already own, and intend to keep.
Through Borro.com, loans are made available to everyone across the broadest range of personal valuable categories including everyday watches and jewellery, memorabilia and even fine art, antiques and luxury cars. Current customers range from families looking to help make ends meet when faced with extraneous expenses such as Xmas, holidays, and school trips, through to business operators needing to finance deals and service their cash flow issues.
As the industry leader, Borro.com offers the lowest interest rates in its class, ranging from 3% to 6% simple interest per month, depending on the size of the loan. With an average loan term of 3 months, the effect of waiving the first month’s interest is that the rates incurred on the average loan would be reduced by one third. For consumers who are unable to extend bank overdrafts or increase credit card limits, Borro.com provides one of the most readily available, cost-effective short-term loan offerings.
Paul Aitken, Founder and CEO of Borro.com commented, “The month of January is when access to personal credit is most restricted. This year, with the credit crisis, and banks continuing to trim consumers’ credit card limits, there will be fewer options than at any time in the last 30 years. We are introducing our First Month Free offer now because the time is right. It also reinforces our leadership position in the market and clearly demonstrates our long-term commitment to reinventing pawnbroking.”
“Banks are finally starting to pass on the effects of UK interest rate reductions, but the bigger problem is that they still aren’t lending,” adds Mr. Aitken. “The good news is that we are doing both – lowering our rates and making short term credit more accessible than ever by lending more against more categories of valuables than anyone else in the market”