Every sport has its unicorns, those oh-so-rare and immensely valuable pieces of memorabilia that fans hope and pray to find in grandma’s attic someday. For example, Babe Ruth’s 1919 Yankees contract is valued at $996,000. The gloves from a 1965 fight between Muhammad Ali and Floyd Patterson brought $1.1 million. A document titled the Rules of Basketball written by James Naismith in 1891 is worth an estimated $4.3 million.
While the values may be in the hundreds or thousands of dollars rather than millions, more common sports memorabilia changes hands every day at pawn shops and retail stores all over the country. Baseball cards, jerseys, and more also change hands at trading fairs, flea markets, and expos. While you can find many venues for selling a valuable and sought-after item, that’s not an option for everyone. For some fans, the sentimental value attached to their collectibles makes them reluctant to part with them permanently. If only there were a way to take advantage of the item’s value without losing ownership of it. Hold on to your autographed bat because there is such a solution!
In a sports memorabilia collateral loan, as the name implies, a lender gives you a loan and takes your collectible to hold as collateral against the loan. Unlike a consignment situation or an outright sale, the item does not become immediately available for others to buy. The original owner retains ownership. In fact, the collectible won’t go up for sale at all unless the owner fails to pay back the loan according to the terms of the agreement. Those terms vary widely and can be short or long term. Payments may be set up on a weekly or monthly schedule.
What Kind of Things Can Serve as Collateral for This Type of Loan?
Some of the most common items used in sports memorabilia collateral loans are:
- Autographed baseball cards
- Pucks, balls, and other gear from championship games and matches
- Signed jerseys belonging to players, coaches, and staff
- Championship trophies, cups, belts, and rings
The most critical factor lenders look at to determine whether to accept an item as collateral is the authenticity. After all, the field is rife with fraud and fakes. A lender who doesn’t lean heavily on authentication documentation will soon be out of business. If you have an appraisal from a recognized professional in the field, it can make all the difference in the offer you get. Other helpful documents are:
- Records of what the item brought in an auction
- Photos of the item in the possession of the famous signer of an autographed item
- A certificate of authenticity from a recognized body of experts
- A paper trail establishing ownership of something that once belonged to a famous person
If you have any of these items, you want to provide those to the potential lender to help establish the value of the item.
Can I Get a Sports Memorabilia Collateral Loan Through a Pawn Shop in Denver?
Denver has a few options for accessing this type of loan. Pawn shops are one such possibility, with dozens of highly rated ones in the Denver area. A pawn loan starts when an owner takes an item into a shop for a valuation. The proprietor offers the owner a loan amount based on the authenticity and condition of the item. The owner and pawnbroker may negotiate back and forth until they agree on an amount and loan terms. The owner gets the cash, and the item is held in a secure location as long as the owner repays as agreed. Most pawn loans are for 30 days, but often the owner of the item has the option to renew for a longer period of time. If the owner of the collectible fails to pay back according to the terms, the pawn shop can place the item for sale to the public.
When you place an item with a pawn shop, you receive a pawn ticket for identification as the rightful owner of the item. You must keep track of this ticket and have it in your possession to reclaim the item; if someone else presents the ticket, they may be able to claim the property. You should read this section of the agreement with the pawn shop carefully to understand how the process works in your jurisdiction.
While pawn shops are often portrayed in the media as shady and untrustworthy, that is far from reality. The industry is a highly regulated one, and most shop owners understand the value of maintaining a good relationship with law enforcement. Therefore they cooperate fully in an effort to reduce the pawing of stolen goods. In the United States, the federal government enforces 14 federal regulations and statutes related to pawn shop operations. Every state and local jurisdiction adds its own rules and ordinances, according to the National Pawnbrokers Association (NPA).
Can I Get a Sports Memorabilia Collateral Loan Online in Denver?
If taking your item into a brick and mortar location doesn’t appeal to you, consider the Lux Exchange and its online process. The Lux Exchange understands that individuals and business alike often find themselves in need of a quick cash infusion. Unexpected expenses, the opportunity to buy assets at a deep discount, and cash shortages in the business cycle can all leave a person in need of financing options. While traditional bank financing can be difficult to obtain and take a long time, a sports memorabilia collateral loan can be accomplished quickly and easily. As an added bonus, the online nature of the process lets you maintain discretion and confidentiality.
- The process starts with an online application.
- The Lux Exchange responds with an initial offer. This figure is a nonbinding one and conditional upon satisfactory evaluation of your item.
- If you accept the initial offer, the Lux Exchange provides you with a prepaid and insured label to send in the item.
- The Lux Exchange team will evaluate your item for condition and value, and then we send you a final offer.
- To accept the final offer, you complete and submit the required documents and submit verification of your identity.
- You must provide your banking information to receive your funds.
- At this step, you also select the arrangements to pay your monthly fees. You can choose maintenance only or set up a payment that reduces the principal as you go.
- Once you’ve repaid your contract amount and all applicable fees, your item is returned to you, simple as that.
Get Started on Your Sports Memorabilia Collateral Loan Today
If an online loan through the Lux Exchange sounds like a good fit for your personal or business situation, you can get started right away. Gather all your documentation and go online to begin the process. The initial offer is nonbinding, so you can walk away if you’re not satisfied. If nothing else, you’ll have an idea of what the value of your item might be. The Lux Exchange wants to make financing your business and personal life easier by giving you financing options you might not have considered.