Collateral Loans: Everything You Need To Know

Collateral Loans Are Simple

‘Collateral’ – the term refers to any property or asset that a customer promises to the lender as a sort of a backup in exchange for a loan. Usually, collateral loan agreements say that the lender can take over the asset if the borrower fails to repay the loan according to the contract. So If you are considering taking a loan secured by a collateral or a personal asset, it is important that you understand how collateral loans work.

Learning this, the lender can take the asset you put up for collateral, but only if you fail to pay off your debt or loan. Assets can be any item of a certain value. Alternative forms of repayment accepted by lenders are numerous . The most popular option is jewelry, in which case, also called a jewelry loan.  This way, collateral assures that the lender receives full or partial payment or compensation. ‘Secured Loans’ are just collateral loans with a different name.

Examples of Collateral Loans

There are three main types of collateral loans.

Personal loans

Customers us personal loans consolidate their previous debt, finance their regular expenses, or build credit. Lenders offer these loans in two main types: secured and unsecured.

The difference between secured and unsecured personal loans is that secured personal loans are backed by collateral. In contrast, unsecured personal loans are not. Secured personal loans have lower rates of interest than unsecured personal loans because collateral reduces the lender’s possibility of default. Physical properties can all be used as loan collateral, such as vehicles, houses, or monetary assets.

Small Business Loans

Small business loans are a way to support a growing or small scale business. Office space rent, equipment, or hiring, are typical expenses for example. Collateral for such loans include real estate, inventory, and future payments by customers.

Small business owners can also use their personal assets to gain approval for a small business loan. As a result,
the lender can ask for a personal guarantee in some cases where the amount borrowed is high. That way seizure of the borrower’s personal assets (collateral) can happen if the company defaults on their loan.

Mortgages and Auto Loans

Mortgages and Auto Loans are among the most common types of secured loans customers use. In these cases, the asset being purchased (the house or car) is used as collateral for these loans, for instance. Most lenders insist that the asset be appraised to determine the exact value of the collateral. This process is extremely important for mortgage applicants as lenders approve home loans. Because they will do so only on the condition that the appraisal value of the house is in excess of or at least matches the sale price.

Advantages of Collateral Loans

You might be wary of taking a secured loan knowing that you could lose a valuable personal or business asset. But this type of loan is the best option for covering business expenses and keeping your debt in control. After all, when you know what you have to offer, you can benefit from collateral based lending.

Here are a few benefits of collateral loans:

  • High range of options for the loan.
  • Increased chance of qualifying
  • Your finances, credit history, and debt management history is not taken into consideration
  • Low rates of Interest
  • Better terms of repayment
  • Better leverage for negotiation

How the Wealthy are Using Collateral Loans

Business owners, CEOs, and the wealthy are turning in their Rolexes, jewelry, or other personal assets for collateral to high end pawn shops for quick and easy loans. As a result, these pawn shops and lending companies are noticing their affluent customers get loans of up to thousands and millions of dollars, because they are using high end collectibles serving as collateral.

The amount, in these cases, is far higher than the average loan size of $150, according to the National Pawnbrokers Association. Business owners are saying that the way luxury goods backed loans are growing does not point to financial distress related to pawn shops, instead it is to seize money making opportunities.

Real World Collateral Loan Examples

Jordan Tabach Bank, CEO of the Beverly Hills based company, The Loan Companies, says, ‘The pickup in economic growth has shifted the balance towards small business owners growing their businesses. Growth is certainly geared more towards opportunity loans than anything else.’ Jordan Tabach Bank’s company operates some high-end pawn shops, not only in Beverly Hills but also in Chicago and New York.

One of Bank’s clients was able to use his expensive watch collection to seal a commercial real estate deal. The customer had spent ten years trying to purchase a piece of property and then it suddenly came up for sale last year, and he had just one week to close the deal. Banks do not provide loans on such a short notice, but when the client showed four high-end luxury watches, Bank was able to provide him with $400,000 in just under 48 hours.

Collateral Loans Are A Tool, Not a Necessity

There is a common misconception that if people are borrowing money, they must be in a bad spot. That is not true. Most often, people whose businesses are steadily growing use collateral loans the most, for instance.

Global wealth is rising dramatically as equity markets have run into record high territory, so prices for luxury goods and important artifacts are rising. Last year, someone bought a Da Vinci painting for more than $450 million, becoming the most expensive art piece ever sold. In December,
a vintage Rolex owned by the Oscar winning actor Paul Newman, set the record for the most expensive watch ever sold at $17.75 million.

How to Find the Best Jewelry Buyer in Orange County

How to Find the Best Jewelry Buyer in Orange County & Surrounding Areas

If you live in Orange County and you’re anything like us, you’ve got a passion for jewelry. It’s also possible that you’re quite attached to the jewelry you own. Because jewelry can hold such a significant sentimental value, we often wear it more for ourselves, rather than for others. It’s also extremely hard to part with certain significant pieces, and it’s not always due to their monetary value. Because of this, when it comes time to part with your beloved piece, it’s important to find the best jewelry buyer in Orange County.

Finding the best place to sell your jewelry in OC can be a daunting task. Due to the sentiment that certain items hold, you want to find an experienced jewelry store that pays top value. Furthermore, you want to ensure that the entire experience is safe, discrete and painless. Let’s explore how to find the best jewelry buyer in Orange County and how to get top value for your items.

Find a Trustworthy Jewelry Buyer in Orange County

We meet with hundreds of people who want to sell jewelry in Orange County each month. Initially, they weren’t looking forward to selling jewelry they loved. Whether selling a diamond engagement ring or a Swiss watch, each piece holds sentimental value. It probably took some time and a lot of thought to acquire your jewelry. We understand this. That’s why it’s important to find a trustworthy jewelry buyer in Orange County.

What makes a jewelry buyer trustworthy? For starters, they’re someone you feel comfortable selling your jewelry to. Furthermore, you want them to be respectful, understanding and honest. Finding an honest jewelry store that buys jewelry in OC isn’t as easy as it sounds. You’re going to want to start with doing some sleuthing. Start by searching for jewelry stores that buy jewelry in your area.

To begin, jump onto Google and try some different searches. For instance, you can search Best Place to Sell My Jewelry,  or try searching Where to Sell Jewelry in Orange County. Try a few different searches and make a list of the top jewelry stores to sell your jewelry to. Once you’ve got the list, head over to Yelp or other review sites. You can start reading reviews from other people who have sold to a jewelry buyer in Orange County.

Find a Jewelry Buyer in Orange County that Pays Top Dollar for Your Items

Searching reviews will give you a good handle on the way others view them and if the jewelry store has a good relationship with their clients. Remember to look for actual jewelry store reviews and not ones that seem over-the-top, purchased or fake. Also keep in mind that happy customers usually mean they got a great value when selling their pieces.

Perhaps for some, this is the most important factor. People want to sell jewelry for top dollar in Orange County. This isn’t a new or far-fetched idea; we get it. There’s a fine line for most jewelry buyers in Orange County because most aren’t buying your jewelry simply in order to collect it. In fact, most Orange County jewelry buyers are more concerned with how much they can make when they sell your jewelry.

Again, we come back to the trust factor here, because all jewelry stores that buy are in effect, businesses. That is, they need to make a profit in order to stay in business. That said, you’re going to want to find the best value when shopping for the best place to sell your jewelry in OC. This will come with some effort, but with the proper research and understanding the process, you’ll get it right.

What is the Process of Selling to a Jewelry Buyer in Orange County?

When selling your jewelry it’s important to remember a few vital things after the sale is complete. The jewelry buyer in Orange County will usually have to spend money and time after initial transaction as well.

  • The jewelry buyers will usually have to polish and clean the piece
  • If there are repairs to be made, a jeweler will have to return it to original specs
  • If the jewelry is engraved, it may have to be filled & removed
  •  The pieces takes space in the store, effectively making it one more item they’ll need to sell
  • It will also need to be graded/tested and physically entered into inventory
  • This includes initial research from more than one team member
  • Time for photography – pics for inventory, social media and online stores/channels

While this may seem mundane, it’s important to understand the process of what a jewelry buyer in Orange County must do after the sale.

Hopefully it also helps shed a little light on the time and money spent after you’ve sold your jewelry and left. Furthermore, it’s important to keep in mind that each jewelry buyer in Orange County has a budget. If they buy jewelry in Orange County regularly, they probably set aside a specific budget for purchases. It’s always smart to call and ask if they’ll give you a free estimate for your jewelry. Now would be the time to provide details including whether the piece is certified as well as carat weight, etc.

Why Watch & Wares is the Best Jewelry Buyer in Orange County

Watch & Wares has been collecting jewelry for over 35 years. It started with one man’s passion for all things luxury and grew from there. Watch & Wares has a reputation as the jewelry buyer in Orange County with the biggest buying power. We sell a lot of estate and pre-owned jewelry and thus need an incoming inventory every month. Because we have spent the last three decades as the best place to sell jewelry, we’ve acquired quite a collection. We’ve also helped thousands of OC & Los Angeles natives buy a piece that would have otherwise been shelved long ago. We think that’s special and that fine jewelry and how it makes people feel — that sentiment — should live on.

As the biggest jewelry buyer in Orange County, we’re also able to offer customers top-value for their items. We know that not every customer wants to sell their jewelry, and therefore we treat each case like anything but a transaction. Your comfort and security are paramount to us, and so we work hard, quickly and with integrity.

Items we Buy as the Premier Jewelry Buyer in Orange County

  • Swiss Watches, including Rolex, Patek Philippe, Panerai, Jaeger-LeCoultre, Omega, Breitling & More!
  • Diamond Engagement Rings
  • Loose Diamonds
  • Colored Gemstones
  • Gold Rings
  • Platinum Rings
  • Vintage Engagement Rings
  • Antique Engagement Rings
  • Estate Jewelry
  • Diamond Earrings
  • Sapphire Jewelry
  • Necklaces & Pendants
  • Men’s Diamond Rings
  • Wedding Rings & Wedding Bands
  • Pins & Brooches
  • Designer Jewelry
  • Cartier, Bvlgari and Tiffany & Co.
  • Precious Metals – Gold, Silver, Platinum
  • Antique Jewelry / Vintage Jewelry
  • Art Deco, Edwardian, Georgian, Art Noveau, Mid-Century Moderne
  • Jewelry Collections
  • Contemporary Jewelry

Check out other items we buy on our site!

Call the Top Jewelry Buyer in Orange County & Get a Free Estimate Today!

Our experienced jewelry buyers will answer your questions and take time to learn about your piece. If you need help identifying the jewelry you’d like to sell, we can help! While it’s best to bring your jewelry into our Orange County jewelry store, we can also give you a free estimate.

If you’re looking for a safe and trustworthy jewelry buyer in Orange County, you’ve found us. We’ve been the best jewelry buyer in Orange County for over 35 years and it’s not by chance. Check out our 5-Star Yelp reviews or our 100% Feedback in our eBay & Etsy stores. We’ve got three locations to serve you, including our Tustin location where we buy jewelry from people throughout Southern California.

Call us at 714-633-2030 today or fill our contact form and a jewelry buyer will call you to set an appointment and answer all of your questions!

#1 OC Estate Buyer – Sell Your Estate in Orange County – Cash Estimate

Orange County Estate Buyer with Over 30 Years Experience Buying & Liquidating Estate Assets

Watch & Wares has been a brick & mortar business in California for over 30 years. Throughout this time, we’ve bought and sold more estates, jewelry, fine watches, diamonds, fine art and collectibles than many competitors combined. Due to our long-lasting relationship with most of our clients, we are also a well-known Orange County estate buyer, working with families in their time of need from all over Southern California.

Our Owner, William Houchin has spent the last 3 decades of his life collecting the finest vintage, antique, designer and estate jewelry & fine watches in Orange County & surrounding areas. Because of this, when people ask the experts where to sell their family estate or liquidate assets in Orange County, most in-the-know refer William at Watch & Wares.

We pride ourselves in doing business securely and discreetly with all of our clients. We’ve served as the Orange County estate buyer for some of SoCal’s wealthiest patrons. Because our number one goal is integrity, we work hard to ensure customer satisfaction with each estate we purchase. We offer personalized attention to detail, whether we’re dealing with the family of a recently deceased loved one, or working with their attorney or another agency.

We understand that selling your family’s estate and prized assets isn’t easy. Due to the nature of most estate liquidations in Orange County, we understand you may be dealing with a lot and are under a lot of pressure. During this trying time, our experienced Orange County estate buyer will visit with you personally and present you with a cash estimate for your estate and valuables. Because collecting is our passion, we’re able to work fast and provide you with values you can trust.

What Types of Items will our Orange County Estate Buyer Buy?

William is one of Orange County’s most well-known buyers of precious metals, estate jewelry, loose gemstones, diamonds, fine watches, collectibles and fine art. From valuable classic cars to high-end diamond collections, Picasso paintings and antiques from several eras — we buy it all! Furthermore, we leave no stone unturned — we’ll help you identify & price your loved ones valuables quickly.

Because it may difficult to know if you have a valuable piece within your collection, simply give us a call and let us help you identify your assets.

Some of the items our Orange County estate buyer purchases include:

  • Edwardian Jewelry & Engagement Rings
  • Art Deco Jewelry & Engagement Rings
  • Victorian Era Estate Jewelry
  • Art Nouveau Jewelry
  • Mid-Century Retro Moderne Jewelry
  • Contemporary & Designer Jewelry
  • Engagement Rings & Diamond Rings
  • Wedding Bands and Antique Jewelry
  • Signed Pieces such as Tiffany & Co.
  • Cartier Jewelry, Accessories & Collections
  • Bvlgari Jewelry, Watches & Engagement Rings
  • Hermes Fine Handbags / Birken Bags and Louis Vuitton Luggage
  • Fine Watches & Swiss Timepieces, including Rolex, Cartier, Patek Philippe & More!
  • Antique & Vintage Watches & Pocket Watches
  • Designer & Antique Silverware — Silver & Gold Plated Flatware
  • Fine Art from a Variety of International, Domestic & Local Artists
  • Antique Lamps, Vintage Signs & Rare/Historic Items
  • Rare Coin Collections, as well as Autographs & Memorabilia + More!

Questions About Selling Your Estate in Orange County? Call Us and We’ll Help!

Because we know that time is of the essence, give us a call and we’ll walk you through our simple process. Our Orange County estate buyer will help you walk through your estate assets. We can set a convenient time to meet, either in our safe & discreet store located in the Orange Circle (Plaza), or we can come to you! Due to the demand for William’s work as an Orange County estate buyer, we work quickly & diligently to ensure our we offer top values for luxury assets.

Furthermore, if you’d like more info about the types of items we buy, or whether your estate would qualify for purchase, simply give us a call or send us a message using the handy contact form on this webpage!

Call Watch & Wares at 714-633-2030 & Get a Free Estimate Today!

In Addition to Buying Estates in Orange County, We also Buy the Following Brands of Fine Swiss Watches & Watch Collections:

  • Rolex
  • Breitling
  • Cartier
  • Patek Philippe
  • Tag-Heuer
  • Hamilton
  • Ulysse Nardin
  • Audemars Piguet
  • A Lange & Sohne
  • Omega
  • Panerai
  • Jaeger-LeCoultre
  • Vacheron Constantin
  • IWC Watches
  • Tudor ….and more!

Finally, click here for a link to some of the other luxury items we buy in Orange County!

You can also read what others are saying about us, due to our sterling service & reputation on Yelp!