Pawning Your Luxury Assets is a Great Way to Release Funds

Date 28 Jun 2022

We've all been there. You've been pinching the pennies for months on end, trying to re-balance the books when, suddenly, life happens.

Whether it be an unexpected wedding, a spontaneous trip to the doctor, a broken down boiler or an outrageously high vet bill, life can be difficult to predict at the best of times, often leaving you in a bit of a financial pickle as a result.

However, when these unexpected situations do arise, you can feel rest assured that a pawnbroker will be there to offer a quick and easy solution to your problems. But, what exactly is a pawnbroker? And what advantages are there to pawning assets over taking out other forms of borrowing?

Well, in this article, we will aim to answer both these questions and more, highlighting some of the key reasons why pawning your assets could be the best decision for you.

What is Pawning?

First things first, as with any type of borrowing, it’s important to really understand what you’re getting into before signing on any dotted lines. So, if you’re relatively new to the idea of pawning, we’ve got you covered.

Having been around for more than 3000 years – when the concept of pawn shops first emerged in Ancient China—pawning simply refers to the process of giving an item in exchange for a cash loan.

Pretend, for example, that you own a classic car that you barely use anymore. By taking this vehicle to a pawnbroker, they will then offer you a short-term loan based on how much the item is worth, before setting up a contract and repayment plan with you to get back what you owe.

Should you manage to make all of the payments required of you in time, you will then receive the car back. But, if you don't, the pawnbroker will be free to take ownership of the car and sell it as they wish.

What Can Be Pawned?

It isn’t just high-value items that can be pawned. Generally speaking, as long as the item has some form of market or sentimental value, it can often be exchanged at most pawn shops for a short-term loan.

This often includes, for example, items like jewellery, coins, electronic equipment, toys, games, sports memorabilia or musical instruments.

However, many high-street pawnshops won't be able to loan more than a few hundred pounds for these types of items. In fact, according to the National Pawnbrokers Association, the average pawnshop loan is estimated to be approximately £125.

That's why, here at Release My Capital, we market ourselves towards much higher-value items, like vintage cars, watches, jewellery, and art, and we offer equity release loans of between £5000 and £2 million.

The Advantages of Pawning

As with all types of borrowing, there are a number of advantages and disadvantages to consider before entering into any type of contract.

However, in light of the recent cost of living crisis, energy bills at an all-time high, mass unemployment and the ongoing fuel hike, more and more people are now looking at ways to generate money and release funds more quickly.

Taking out a short-term loan is one such method to do exactly that, but, if you still need convincing, listed below are some of the key benefits that choosing to pawn your assets could offer.

Instant Credit

Following the financial fallout from the pandemic, it’s safe to say that the current economic landscape isn’t exactly the most stable it's ever been.

As a result of this, applications for the more traditional methods of borrowing money – such as taking out a mortgage, loan, or credit card – are becoming considerably more difficult to get ahold of, while also taking much longer to process.

Pawning, on the other hand, is a great way of accessing funds both quickly and easily. In fact, most short-term loan agreements can be drawn up within a few hours, with the funds being transferred to your bank on the very same day you apply. We’ve even got it done within two hours before.

At-Home Application Process

While most pawnbrokers will require you to travel to them in some way, here at Release My Capital, we pride ourselves on our virtual service, which allows you to find out how much your items are worth from the comfort of your own home.

While the practicality of this will inevitably depend on the assets you are trying to pawn, having this level of at-home comfort will spare you the need to waste hours lining up in a queue trying to borrow money from a bank.

All of the forms during our application process can be filled out both quickly and easily online, while our friendly team are always just a phone call away to answer any questions you might have.

3. No Credit Checks

If you have ever borrowed money in the past and failed to pay it back on time, this will have left a mark on your credit history, making it more difficult for you to borrow both now and in the future.

In other words, should you try to apply for a credit card, loan, or any other traditional type of borrowing, you will more than likely get declined. This is because you look like a bad bet to lenders, based on the poor credit rating you have.

Pawning your assets, on the other hand, doesn't involve a credit check of any kind. Instead, the whole transaction is wholly dependent on the value of the item you're looking to pawn – rather than your credit history.

Ultimately, giving over a high-valuable item like a car, ring, or watch provides enough of an incentive to pay back what you owe, while also providing the pawnbroker with insurance should you fail to keep up with repayments.

Therefore, by allowing the buck to fall on your shoulders, you will not only be able to access the funds you need a lot more easily, but you'll also have a personal incentive to stick to your repayment plan.

4. Easier Approval Process

When applying for other forms of borrowing, it isn't just credit checks that can slow down applications.

Lenders typically require a whole load of information – from your property details to your income to your monthly expenses – before deciding whether to approve you or not. This can take a long time to process, meaning you probably won't receive your funds that quickly.

Pawning your assets is a much easier process all-round. Once your item has been assessed, you will more than likely be offered a short-term loan right there on the spot.

There's no need for any evidence or proof of where you live or how much you earn. As long as the item holds a market value, you'll be able to release some form of equity from it.

5. Get More Out of Your Items

When you need to get cash fast, there can be a real temptation to turn to places like eBay and Gumtree to sell everything you own.

However, this isn't always a sure-fire route to making money, since it relies on needing to find a buyer who actively wants to purchase what you're selling.

Plus, when you need money quickly, you are more likely to settle for a price that is lower than an item's actual worth, meaning you could have made more on it if you’d not been in such a rush to sell.

Pawning your items offers an alternative route to selling, allowing you to not only release money from your items but also get them back at the end of your loan.

6. No Long-Term Commitment

Short-term loans are called ‘short term’ for a reason, since they allow you to get out of financial difficulty as quickly as possible.

Depending on what your items are valued to be worth, you can then repay what you owe on a flexible loan built around what you can realistically afford.

Likewise, if you are able to overpay on certain months or even afford to settle early, this won't incur any of the penalty fees or hidden charges you might find when borrowing through the more traditional routes, like credit cards or mortgages.

As such, pawning agreements can be short and sweet transactions that save the need to worry about spending years on end indebted to a lender.


So, there you have it – a quick whistle-stop tour through what pawning is and why it is such an effective way to release funds.

If you’re considering pawning a high-value item, our team here at Release My Capital have extensive experience within the industry and would be more than happy to help.

Whether you're looking to release equity from a car, piece of jewellery, or a work of art, we offer a fast, discreet and flexible service that guarantees privacy and won't leave a mark on your credit rating.

As a family-run company, we also understand all too well how difficult getting out of financial hardship can be, which is why we take great pride in offering a friendly, caring service to each of our clients.

To find out more about our team or the services we offer here at Release My Capital, why not contact us at your earliest convenience?

Simply give us a call on 0333 577 3000 or send an email to and a member of our experienced team will be more than happy to answer any questions you might have.

Alternatively, if you’re ready to get started on your application, simply click here to find out how much we could offer for your assets.