Until now, you might have considered more traditional routes when you needed a quick cash injection. For example, through banks, credit unions and other high street names in the financial space.
But more people are realising that going traditional isn’t the only way to unlock capital. With a lack of flexibility and long approval times, businesses and individuals are looking to alternative options, like asset lending (or pawnbroking).
But is asset lending better than finance? That depends on your situation. Let’s dig in…
What’s the difference between asset lending and finance?
Traditional finance covers anything from loans to overdrafts and credit cards. When you’re struggling with cash flow or need some extra funds to cover a one-off investment, you can apply for a loan (lump sum) that is repaid in regular instalments over a set period.
Asset lending lets you borrow cash by pawning your assets as collateral. You temporarily trade your assets (like watches or cars) for a same-day loan, and your assets are returned at the end of the loan period. That means you never lose ownership of the assets and can benefit from any appreciation, but the lender has security (and peace of mind) that you’ll repay the loan.
Asset lending vs. finance
A side-by-side comparison to help you determine if asset lending is better than traditional finance for you.
| Feature | Asset lending | Traditional finance |
| Time to receive funds | Same day | Hours, days or weeks |
| Collateral | Luxury assets | Often property or business assets |
| Credit checks | Not required | Usually required |
| Flexibility | High – loan period can be extended or shortened | May be less flexible |
| Suitable for… | Short-term liquidity needs | Long-term investments and expenses |
| Lender | Asset-based lenders (like Trilogy) | Banks and financial institutions |
Asset lending services from a pawnbroker might be better than finance when…
✓ You want flexibility in how you use the funds
✓ You need same-day approval
✓ You don’t want a record on your credit history
✓ You need quick cash flow (even for high amounts)
✓ You’re looking for a short-term fix
However, you should keep in mind that there’s a potential loss of assets if you can’t repay the funds.