Looking for a loan but don’t have any real estate to put down as collateral? No need to fret—just take a look inside your closet!
Yes Lady Finance Co., a Hong Kong-based loan company, accepts luxury designer handbags—from Chanel, Gucci, Hermes, Louis Vuitton, and occasionally Prada—as collateral on loans ranging from €.200 to as high as €.20,000 (for a Birkin). Loan officers work with experts from a luxury secondhand handbag store to assess a bag’s authenticity—and will lend the owner up to 80 percent of its estimated valuation.
One client, 30-year-old Maggie Wong, told the Wall Street Journal that she uses the loan service when she needs to pay for her child’s tuition or daily expenses. She’s put up a total of three bags in the last year to borrow €1,290. And another client, Angel Yam, says she received €1,550 for a Chanel handbag—but doesn’t care if she defaults on the loan and loses her purse in the process.
“I have too many idle handbags at home,” she told the Journal. “I don’t feel any loss when I take some of them as collateral for loans.”
Of course, the number-one question I have is: What happens when someone rocks up with a fake handbag and tries to land a €1,000 quickie? Yes Lady actually has a pretty tactful policy for dealing with counterfeits—”We don’t tell them we know; we just say we can’t approve the loan.” Classy.