Say hello to the handbag-backed loan. A company in Hong Kong, Yes Lady Finance Co., provides loans to customers if they’re able to bring in their beloved handbags as collateral.
Yes Lady provides a loan within half an hour at 80% of the bag’s value—as long as it is from Gucci, Chanel, Hermès or Louis Vuitton. Occasionally, a Prada purse will do the trick. Secondhand classic purses and special-edition handbags often retain much of their retail prices.
A customer gets her bag back by repaying the loan at 4% monthly interest within four months. Yes Lady says almost all its clients quickly pay off their loans and reclaim their bags.
The company recently lent about US$20,600 in exchange for a Hermès Birkin bag, but Yes Lady’s purse-backed loans start at about US$200.
This is bizarre, and one of those “markets in everything” phenomena. The best part? Some people try to get away with bringing in fake luxury handbags. You should read the article on how Yes Lady handles those scenarios…