Collateral Loan vs. Selling
A clear, honest comparison to help you decide which option is right for you.
How a Collateral Loan Works
You borrow money using your item as security while keeping ownership. You receive cash immediately, and your item is safely stored until you repay. Loans run for a 4-month term, with the option to extend by paying interest, or redeem by paying interest and principal in full. There’s no credit check, and no credit consequence if you decide not to redeem or extend.
How Selling Works
You receive full value for your item in cash immediately, with nothing to repay and no ongoing obligation. Ownership transfers to us, and there’s no possibility of getting the exact item back later.
Which Option Makes Sense for You?
Choose a loan if the item has sentimental value, you expect to want it back, or you just need short-term cash. Choose selling if you’d rather have full value up front with no ongoing obligation.
Many clients come in undecided and choose after seeing both a loan quote and a purchase offer side by side, we’re happy to walk through both options with you.
Frequently Asked Questions
Can I decide between a loan and selling after I come in?
Yes, we’ll gladly quote you both a loan amount and a purchase offer so you can compare and decide in person.
Is a loan or selling faster?
Both are typically completed the same day, usually within 15 to 30 minutes of your evaluation.
Does either option affect my credit?
No, neither a collateral loan nor an outright sale involves a credit check or is reported to credit bureaus.
What happens if I take a loan but change my mind later?
You can redeem your item at any time by paying the principal and accrued interest, or choose not to and simply let the loan lapse with no penalty.
Which option pays more?
Selling generally provides more immediate cash since you’re receiving full assessed value, while a loan gives you a percentage of that value with the option to reclaim the item.
Can I switch from a loan to a sale later?
Yes, at any point before your loan term ends, you can choose to sell the item outright instead of redeeming or extending.