The German term “Pfandkredit” denotes a collateralised loan—pawn credit—that trades assets for immediate liquidity. Unlike traditional loans, credit history is irrelevant; the item itself secures repayment. Berlin’s regulatory framework ensures fairness: interest is capped, storage fees regulated, and contracts standardised.
At the trusted counter linked below, English-speaking agents evaluate jewellery, luxury watches, art objects, and even classic cars. After inspection and value agreement, you sign a contract specifying loan amount, interest (usually 1 % per month), and storage fee. The law bars hidden charges, so what you see is what you repay. Loan terms run three months, extendable in three month increments upon fee payment.
Collateral sits in climate controlled vaults, insured to replacement value. Borrowers receive SMS reminders a week before maturity, avoiding default surprises. Should you choose not to repay, the pawnbroker auctions the item after a legally mandated waiting period; any surplus above loan and fees is yours, claimable for three years.
Businesses utilise Pfandkredit, too—film producers pawn camera kits between projects; restaurateurs pledge vintage wine collections for short term payroll. Because loans never appear on credit reports, they protect corporate ratings.
For individuals, advantages include speed (15 minute processing) and privacy—only ID and a signature required. Fees are tax deductible for self employed borrowers if funds support their trade (§4 IV EStG). Before visiting, photograph items and request a pre estimate to ensure expectations align.
When handled by licensed professionals like Pfandkredit Berlin, pawn credit becomes a transparent, low stress tool for bridging cash flow gaps without long term financial entanglement.