Borrowing against IP takes a new twist


The market for luxury handbags in Hong Kong is surging, their value supported by a new practice: putting them up as collateral.

Some people might consider this as part of the lively pawn shop business in HK, but it is different, as Yes Lady Finance Company sees it.

According to the Wall Street Journal, Yes Lady provides a loan within thirty minutes, at up to 80% of the bag's value if it is from Gucci, Chanel, Hermès or Louis Vuitton, at 4% monthly interest, hiring valuation assessors to check the handbag’s condition and authenticity. A customer gets her/his (20% are men) bag back by repaying the loan at within four months. Yes Lady says almost all its clients reclaim their bags.


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