When you need money for an emergency situation, you may consider selling your jewelry. If your jewelry is made by a well-known jewelry manufacturer, another option may be to ask a jewelry store for a monetary loan and offer your jewelry as collateral. Many jewelry stores will enter into a loan agreement with you if they like your jewelry. Asking a jewelry store for a loan is better than pawning your jewelry, as a good jewelry store can recognize the inherent value of your jewelry when a pawn shop may not be as knowledgeable. Here are some considerations to think about, should you decide to ask a jewelry store for a collateral loan:
Choose A Reputable Jewelry Store: Choose a jewelry store that carries jewelry of the same quality as your jewelry. Make sure that this jewelry store has been in business for a while and has a good reputation for offering quality jewelry. Research online for reviews and recommendations about the jewelry store of your choice to see unsolicited remarks and evaluations. Check to see if the jewelry store is listed with the Better Business Bureau, and read the listing.
Photograph Your Jewelry: Take closeup descriptive photographs of the front, back, and sides of your jewelry. This will help to identify your jewelry if there are unforeseen circumstances in the future. Your photographs should include close-up pictures of the quality marks on your jewelry and the creator's logo or signature mark. These photographs should also include any marks or scratches on your jewelry that can identify your particular jewelry pieces.
Write Your Own Collateral Loan Agreement: Although a jewelry store may have their own collateral loan agreement for you to sign, it is helpful to draft your own agreement and have the jewelry store sign it as well. This is a way to protect yourself and your jewelry in the event of unforeseen circumstances. In your agreement, write a complete description of your jewelry that includes the type, size, and value of any gemstones and the composition of all precious metals. It is best to have your jewelry appraised by a certified appraiser before offering it as collateral on a loan. Attach a copy of the certified appraisal to the loan agreement. Also in the loan agreement, list the loan terms with the interest rate you agree to, list the repayment schedule, and add particular details that may apply to your specific agreement. Deposit your jewelry in a bank deposit box that requires two signatures to open the box. Sign your collateral loan agreement with a representative of the jewelry store and, in front of a notary public, have the loan agreement notarized.
Repay Your Loan Agreement: Repay your collateral loan on time. Keep in touch with the owners and managers of the jewelry store to let them know that you value your jewelry and will honor your loan agreement. Keep a detailed record of your repayments on your loan agreement and note on your check that your payment is a partial repayment of your collateral loan. If you have problems making your repayments, discuss your situation with the jewelry store and ask for an extension of time or a rewrite of the terms of your loan arrangement.
You can successfully use your valuable jewelry as collateral on a monetary loan with a jewelry store with careful documentation and repayment. Hopefully, this will help you with your emergency, and all will be restored upon completion of the repayment of your collateral loan.To learn more about jewelry loans, contact companies like Sol's Jewelry & Loan.