PWCC expands its lending activities

[raulus]

Not sure if the same deal is being offered to everyone, because the website lists one set of terms, and over email they're telling me some different details.

But over the last couple of days, I've exchanged emails with the lending team, and for those interested, these are the details I've received to date:

The original email details:

• Vault Loans – PWCC offers loans on a portfolio's conservative market value, using their trading card assets as collateral. We loan up to 40% of asset value at an interest rate of 1% per month in a 60-day term with optional renewal. A 1% origination fee may apply on these.
• Cash Advances – You can request a cash advance for up to 50% of the conservative market value of items you’re sending to auction. (more possible upon approval)

My queries over email (and their responses):

Q: Quick question for you about the 60-day loan term outlined below. What does optional renewal mean?

A: It means you can re-up the loan with new terms or you can pay it off in full.

Q: Is it a mutual option, or is it at my sole option?

A: Your sole option.

Q: You mentioned “new terms”. Does this mean that the interest rate get re-priced at then-prevailing rates if I re-up the loan?

A: No response yet.

Some commentary from me:

Obviously for a borrower who is borrowing on a 60-day loan, the paranoia is that the lender won't extend your loan, at which point either you need to come up with the cash to pay it off, or else they sell your cards. Or alternatively, if they do extend the loan, they will only extend it at onerous rates and terms. I'm not planning to use this product myself, but for those who do, I'd be interested in your experience, particularly around renewing the loan when the 60-day term is up.