Borro launches online service to provide short-term loans

‘BORRO' (borro.com) launches today as the world's first online service offering customers short term loans through the temporary release of equity from personal assets such as jewelry, watches, gold, gemstones, memorabilia and other valuables. BORRO provides a fast, convenient and responsible solution when traditional sources (credit cards, personal loans and overdrafts) are not available or are already fully utilized.

BORRO offers a lower cost solution compared to the charges incurred in using alternatives such as an unapproved overdraft, or a ‘payday loan'. In addition there are no credit checks or risks, and no bad debt risks. The loan can be paid off whenever the customer chooses during the six month term of the contract and the valuables they pledged are then returned.

BORRO will lend up to 40% of the value of items pledged and charges interest at 6% per month (4% or less for loans of £1,000 or more). There are no other fees or charges of any kind. Loans of between £100 and £100,000 are available. Over 85% of customers taking out this kind of loan repay their loan and redeem their valuables.

One of the unique advantages of a BORRO loan is that unlike overdrafts and ‘payday loans', borrowers cannot get into further debt if they default. If after six months the customer can't repay the loan and chooses not to extend the term, BORRO sells the items pledged and pays any surplus back to the customer.

Paul Aitken, Founder and CEO of BORRO said, "We allow people to lend themselves money through the temporary release of equity from their personal assets - all from the comfort and convenience of their own home. Our approach allows us to keep our interest rates extremely competitive, ensuring that we offer radically better value than an unplanned overdraft or a payday loan.

The added benefit of our service is that our customers have no risk of accumulating bad debts. If they can't or choose not to repay their loan, BORRO sells the items they have pledged to repay the loan and returns any excess proceeds to the customer. This means that the consequences of not paying off a loan are very clear - and that it is impossible for our customers to build up any bad debt through taking out a BORRO loan.

We are proud of this innovative and radically better-value solution that we have created for people with a short term cash need"

BORRO has already gained a number of customers through the pre-launch test of its service. These customers have shown that the concept is very appealing and that the service works well. A wide variety of valuables have been used to secure the loans people are seeking.

To date these have included a variety of jewelry, watches, gold, and paintings and also some more unconventional items such as a first edition of ‘Harry Potter and the Philosopher's Stone' signed by author JK Rowling, a set of medals from the Second World War, a 1996 British Olympic singlet signed by Steve Redgrave and Matthew Pinsent, a signed photograph of the Beatles, and private number plates.

BORRO is backed financially by the European Founders Fund which is also invested in businesses such as Facebook and Linkedin and has previously founded and sold companies to eBay and Verisign. It has an extremely impressive track-record in supporting the long-term growth and success of similar online businesses. The launch of BORRO in the UK is the first of an intended international roll-out of the business, to include other European countries and the U.S.A.