High-end pawn shops in South Florida offer quick loans

Midtown Pawn Boutique opens in Miami

MIAMI – South Floridians are turning to pawn shops instead of banks for quick loans.

Michelle Villalobas, a motivational speaker, pawned her pricey apparel so she could expand her business. For her, it was a better option than a bank.

"When I went in to get a loan a couple years ago, I thought this is going to be an easy, breezy thing. I'm a great client. I've got cash flow," Villalobas said. "I got turned down after two months of back and forth."

Customers bring in their valuables. If a broker is interested, he'll offer a loan and cash on the spot.

"The reality is that not everybody that's rich is liquid. A lot of people do not have liquidity in order to be able to fund these adventures that they have, so that's what we do," said Adriana Jimenez Hernandez with Midtown Pawn Boutique in Miami.

The borrower has a few weeks to pay off the loan, which often includes additional fees, and sometimes interest rate of up to 25 percent. But despite the added cost, customers are taking advantage of this type of private lending.

The Jimenez Group, which operates more than 50 pawn shops nationwide, recently opened a store in Midtown. 

"We will go as high as any customer needs to be," Hernandez said. "Our ideal clientele is small business owners, venture capitalists, entrepreneurs, people who have a dream. What we want to do is finance people's dream."

Shops accept items ranging from family heirlooms to motorcycles to jewelry.

"We have valuation experts who come in here and value everything to the tee," said Hernandez. "I don't want to put a limit to what you can bring in here because you might have a treasure at home."

"It's just a question of cash flow," Villalobas said. "It's not like you can't afford something."

Boca Raton Pawn, which opened three years ago, also often takes risks on small business owners.

According to the National Pawn Shop Association, 80 percent of all collateral property is reclaimed.