What is a collateral loan?

A collateral loan is a loan in which you provide physical goods with an estimated resale value as backing towards the money that you receive.

In the event that you are unable to pay back the loan, or the monthly interest – the collateral is used as a means to recuperate the money that was originally paid out to you.

Are there any credit checks involved?

There are absolutely no credit checks involved in our process. We also do not perform background checks, we do not ask about your estimated net worth, and we never inquire about your collateral holdings outside of the loan you are working on with us.

What can I use a collateral?

We offer the best appraisals on precious metals, fine jewelry, designer handbags, luxury watches, and other items with a verifiable aftermarket resell value.

How do you determine my monthly interest rate?

Based on the amount of money you need, we provide you with a monthly interest rate sheet for collateralizing your loan. Depending on the collateral you put up for your loan, you will receive a related fixed monthly interest rate payment amount. Each month, your minimum payment will be the assigned interest rate amount.

Can I use more than one item as collateral?

Absolutely. We can often utilize several items to collateralize your rate sheet. As long as we can meet the required collateral expectations for your desired loan amount, we can work with you to reach your requirement.

Who owns my collateral?

While your loan is active, you remain the sole owner of your property the entire life of the loan.

Should you be unable to make a payment, then and only-then does the ownership of the property transfer over to Defco.

How long can I maintain a loan active?

While our loan periods are up to 90 days, we can work with you to continue to extend your loan past the original period given that you continue to pay the monthly interest fee payment.

Ask your loan concierge about length when working through your application process.

What happens if I can't pay my loan?

In the event that you are unable to continue paying for your loan, Defco Loans will place your collateral up for sale through our wholesaler network.

To avoid this, we request you notify us as soon as you are aware that you cannot make your payments – so that our team can work with you.

If I default on one loan, can I re-apply at a later date?

Absolutely. Since our loans are collateralized, we offer the opportunity for repeat loans – given that your new loan is also collateralized based on your future needs.

Do I have to be in the state of Florida to get a loan?

You do not. We work virtually with many customers and can offer 100% virtual programs. Please note, however, that all loans processed are subject to all applicable laws and regulations of the State of Florida – specifically Broward County & Palm Beach County, FL. 

How long does the appraisal of my collateral take?

We are able to make immediate appraisals on gold items as soon as they reach our intake center. Fine jewelry is appraised within a few hours. Luxury handbags and luxury watches must go through a 24 hour authentication protocol. We authenticate hundreds of watches and handbags every month – and follow a very refined authentication process in order to appraise your item using its maximum resale value potential.

Frequently Asked Questions

Below are some Frequently Asked Questions regarding DEFCO LOANS as a business. While these questions are frequently asked, we felt they would be better served separated from the normal FAQs section that pertain specifically to loan information.

How many years has DEFCO LOANS been operational?

DEFCO LOANS has been operational for 10 years. We began as a local pawn shop, and moved into collateral lending in 2016.

Is DEFCO LOANS licensed as a financial lender?

DEFCO LOANS holds a pawn license with the department of agriculture in the State of Florida – specifically in Boca Raton. Pawn loaning is considered collateralized lending, and is marketed as such. Our pawn license is available for display upon request at our Boca Raton location.

Are my items secure being with DEFCO LOANS?

We utilize the highest security standards with any items that are held as collateral for a loan. Our facilities are monitored 24/7, our storage facility is fully insured, and we have additional vaulted storage (upon request) for exceptionally high valuable items.

Does DEFCO LOANS have FDIC Insurance?

As we are not a traditional financial lending institution we are not required to carry FDIC Insurance. Our liability extends to the physical security and insurance of collateral items that we store for customers.