If you need a short-term loan in Hong Kong, look no further than pawning your beloved Louis Vuitton handbag. No need for credit checks and cumbersome paper work, all it requires is a Hong Kong address, identification card and a haute handbag. Hong Kong’s Yes Lady Finance Co. deals in handbag-backed loans. This new trend started by Yes Lady works like this: The four year old company accepts handbags on the spot if their assessors from affiliate Milan Station Holdings, a chain for luxury secondhand handbags, check and approve the condition and authenticity of the handbag. Customer gets 80% of the bag’s value in half an hour. Only condition – bag has to be from Gucci, Chanel, Hermès or Louis Vuitton, if it’s your day Yes Lady might take a Prada.
The cost of the handbag-loan is 4% monthly interest. Loan repayment period is four months. Clients who can afford designer handbags, quickly pay off their loan according to Yes Lady. Ms. Wong, a regular at Yes Lady said “I don’t want to go through all the complicated application procedures in the banks.” So far she has put up three purses—Guccis and Louis Vuittons—for a total of US$1,290. She paid off the loans and has the bags back.
One of its clients received $20,600 against a Hermès Birkin bag. Another one brought in 40 or 50 Gucci purses at once, to the surprise of company Manager Irene Chu. The client received a $38,000 loan and later returned to reclaim the bags, which he sold in his own store. About one in five handbag-loan customers is male at Yes Lady. Yes, they do occasionally get the fake Gucci and they politely turn down the loan request.
Yes Lady, its Cantonese name translates to “Rich Woman,” caters to the wealthy whose money may be tied up in stock, property or luxury accessories. At Yes Lady simplicity and flexibility is flexing its muscle against the banks.