Demand for pawn loans on the rise: Rapid support in times of crisis

The Stuttgart-based auction house Eppli has seen an increase in demand for pawn loans. Increasingly, medium-sized companies and self-employed persons are taking advantage of the quick credit facility. Eppli supports them with special conditions.

• Crises such as the global Corona pandemic, the increased rate of inflation and the Ukraine conflict are causing demand for pawn loans to rise
• Since the beginning of 2022, the loan amount has already increased by 60 percent compared to 2021
• Medium-sized entrepreneurs and self-employed persons receive special conditions for a pawn credit at the auction house Eppli

The oldest form of credit in the world is currently experiencing an unusually strong upswing. Crises such as the worldwide Corona pandemic, the increased inflation rate and the conflict in Ukraine have further strengthened the demand in the pawn business.

Especially entrepreneurs and self-employed are feeling the economic consequences: Low order levels, increased material costs and late payments on the customers. Many entrepreneurs from the have already taken advantage of the benefits of the already taken advantage of the deposit credit to make to become liquid quickly and without bureaucratic and without bureaucratic effort. "Since the beginning of the year 2022, we have already increased the loan amount has already been increased by 60 percent," says Ferdinand Eppli, Managing Director of the Eppli auction house. As leading auction house in southern Germany and a long-standing and a long-standing family business, Eppli Eppli sees it as its entrepreneurial and social duty to support small and medium-sized entrepreneurs and self-employed in these times of crisis and offers them special conditions for the pawn credit.

The Eppli auction house specializes in special value objects: from valuable watches and jewelry, antiques and art to designer fashion and accessories. The Eppli Expert Center at Stuttgart's Marktplatz combines the expertise from all these areas and ensures that the daily current market value of the objects is is estimated.

The pawn credit: Discreet and without bureaucratic effort

The pawn credit is a simple and fast possibility to become liquid in case of a short-term financial bottleneck. The borrower does not have to provide any information on his creditworthiness and does not incur any debts, because he borrows his valuable object as a liability for the repayment. In addition, pawnbroking is clearly regulated in Germany: Pawn stores are only allowed to operate state-licensed pawnshops, such as the family-owned company Eppli. Income from pawn transactions is generated only by the interest and fees. If the item cannot be redeemed in time, it must be auctioned off. If it achieves a higher value at auction than the credit line, the borrower can cash out the profit. Once the decision has been made to take out a pawn loan, the valuable objects can simply be taken to the expert center at Stuttgart's Marktplatz or to the auction hall in Leinfelden-Echterdingen for valuation. The amount of the loan is then paid out directly to the customer in cash or transferred to the preferred account. The borrowers are not personally liable, only the pledged object serves as collateral. The object can be redeemed within a term of four months. A renewal for another four months is possible for a fee. "But in 95% of cases, the pledge is released again within the 4-month term," notes Ferdinand Eppli.

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