Zillidy Offers New Way to Gain Quick Cash
"[Canadians] are asset rich," says found and CEO Steven Uster. "They have a lot of stuff." He says that Zillidy is for the ordinary person who has a stable job but may have what he calls "cash peaks." "Clients borrow money using their high-end valuables without having to sell them," says Uster. "Our clients have jewelry, watches or gems from when they were first married or gifts they inherited."
What makes Zillidy different from the average pawnshop is the size of the loans and the process.
"The average pawn shop loan is $80," says Uster. "They offer you the lowest value and hope you default." When someone applies for a Zillidy loan, the company does an initial value of the asset via a photograph. Then, if the asset is accepted as collateral, Zillidy will send a pre-paid shipping label and will deposit the cash into the client's account.
The loans range from $1,000 up to $500,000.
The item remains in Zillidy's secured vaults until the loan is repaid. If a client defaults or choses not to reclaim the item, Zillidy will manage the sale, take back the loaned amount and give the balance to the client.
But what of the interest? Pawn shops have a reputation, true or otherwise, of charging very high interests. Uster says that clients only begin to pay interest which is around 2.9 per cent after the loan terms which are usually 90 days. He also says that there are no hidden fees.
Uster says that there is interest in Zillidy's offering. He has seen an increase in applications by small business owners who need a quick cash infusion to grow their business or by people who need a bridge to cover fees during a transaction.
The next step for Zillidy is to accept art and wine as collateral.
To see how Zillidy works, you can watch the video: