I need to pawn my handbag, but what is the safest way to go about it? Using high-value luxury assets, like Chanel or Hermes handbags, is an excellent way to secure same-day cash. But it can seem like a fairly daunting task if you’re new to pawning. How do you find the best deal? Who should you trust to go about it safely? We understand these concerns because we work with clients all the time to help them secure loans against handbags.
That’s why we’ve put together this quick guide on how to pawn handbags, including what you can expect from the process and what you can do to prepare your assets beforehand to secure the best offer.
Why Pawn Designer Handbags? The Benefits of Collateral Loans
For some, selling might seem like the best way to liquidate an asset. It’s quick, and there aren’t any loan payments to worry about. What if you’re fond of your hard-earned designer bag and want to secure cash while keeping ownership? That’s where a collateral loan comes in. It provides quick access to money without credit checks or affecting your credit score. Furthermore, it’s completely confidential, and you can collect your handbag as soon as the loan is repaid.
Chanel and Hermès frequently raise retail prices while limiting supply. As a result, handbags from both brands often appreciate, making them excellent collateral for loans against handbags.
Click here to learn more about designer handbag loans.
Top Hermès Bags for High Loan Amounts
- Birkin, all sizes
- Kelly, Sellier & Retourne
- Constance
Top Chanel Bags for High Loan Amounts
- Classic Flap
- Boy Bag
- Chanel 19
Step 1: Prepare Your Handbag for Appraisal
Before meeting with Qollateral or shipping your bag, gather everything that came with it, such as:
- Authenticity cards
- Receipts or proof of purchase
- Dust bags and boxes
- Certificates of authenticity
- Original accessories that came with it, like straps, rain covers, and pouches
Presentation matters: Wipe your bag using the brand’s recommended cleaning method for its material. It also helps to give it a quick once-over. Is the interior clean? Are there any loose stitches or hardware issues?
Factors That Increase Value: Excellent overall condition, rare colors or limited-edition releases, full packaging and paperwork, unique provenance or purchase history.
Step 2: Understanding Designer Handbag Appraisal
A reputable lender, like Qollateral, will have an in-house expert familiar with luxury handbag authentication to ensure your asset is properly evaluated. During the appraisal, they will take several factors into consideration, such as brand, model popularity, demand, resale value, overall condition, and rarity.
Every asset is also authenticated. The appraiser will verify the bag’s serial number to ensure it’s genuine. They will also take the time to inspect each bag thoroughly. Are the hardware, stitching, fabric, and other design elements correct and authentic?
Most luxury handbags qualify for a certain percentage of the resale value. This percentage, known as a “loan-to-value ratio,” determines how much you can borrow. Notably, Qollateral’s LTVs are among the most competitive in the luxury lending business.
Step 3: Choosing the Right Lender
Finding a pawn shop willing to loan against handbags is one thing. However, finding one that’s safe and that you can trust is an entirely different matter.
What to look for:
- An established lender in good standing with the community, and with great reviews as well
- Terms and conditions that are easy to understand
- Proper licensing and insurance coverage for your assets
- Secure storage facilities
- Experience in authenticating designer handbags
- Flexible loan terms and rates
What to avoid:
- Pressure to accept an offer immediately
- Sneaky, hidden fees
- No reliable authentication process
- Poor security standards. Where your assets are stored matters!
Qollateral checks all the right boxes with 24/7 monitored storage inside NYC’s International Gem Tower, all backed by Lloyd’s of London insurance. Furthermore, we employ a team of knowledgeable and experienced appraisers. Services are discreet with the most competitive rates on the market.
Step 4: The Loan Application Process
The loan application process can be completed the same day, with cash immediately in hand for in-person clients.
The first step is to reach out to our team here at Qollateral. That includes submitting photos of your handbag to help us prepare a preliminary quote. If you’re happy with the offer, we can move on to the in-person appraisal and authentication. If everything checks out from there, we will present you with an official offer. All that’s left to do is sign the loan agreement and place your handbag in Qollateral’s secure storage. Funding is instant.
Common Mistakes to Avoid When Pawning Your Handbag
Avoid these common mistakes to optimize designer handbag value:
- Not researching the current resale value first
- Accepting the first offer you receive
- Not thoroughly reading the loan terms
- Choosing a lender simply based on the loan amount
- Failing to document your handbag’s condition
- Missing payment deadlines without communicating with the lender
- Confusing pawn loans with consignment services
Conclusion: Pawning Your Handbag Can Be Safe, Simple & Empowering
As you can see from this guide, pawning your handbag is a safe and reliable way to access some quick cash with the right lender on your team. No other lender approaches asset-backed loans quite like Qollateral. Every asset is properly insured and stored throughout the loan term and initially evaluated by a qualified expert with extensive experience in designer handbags.
Contact us now to get started.
Call or text: 212-287-5257
Learn more about lending at Qollateral by visiting our resources page.
- 100% Discreet
- 100% Safe
- 100% Secure
- 100% Risk-free
- 100% Insured
- 100% Satisfaction Guarantee
