Say hello to the handbag-backed loan, a unique Hong Kong phenomenon. While money lenders typically ask for cars and homes as collateral, Hong Kong’s Yes Lady Finance Co. seeks its customers’ beloved handbags.
The four-year-old company accepts handbags on the spot, assesses them for their condition and authenticity and then procures loans within half an hour, as long as the bags are Gucci, Chanel, Hermès or Louis Vuitton. Occasionally, they’ll consider a Prada.
Until you repay, you have to give up the bag:
One customer, Ms. Chu recalls, brought in 40 or 50 Gucci purses at once. The client received an advance of roughly US$38,000, and later returned to reclaim the bags which he sold in his own store.
Almost all clients at Yes Lady pay the loan back quickly and reclaim their bags, Ms. Chu says.
Here is more, Google “Riva Gold handbag-backed loans Hong Kong” if need be for an open link.
Addendum: Izabella Kaminska offers comment.