NEW YORK (MainStreet)There's a new bank in town. One that can wire a million dollars in 15 minutes without checking your credit. No lengthy interviews, no invasions of privacy, no risking your home. If you need a quick pile of cash, it's time to check out "the people's bank."
"Welcome to paradise," says Jordan Tabach-Bank of New York Loan Company. I've traversed a heavenly white lobby, passed the sleek security desk, eye scanners, metal detectors and computerized elevator to reach a "bank" so unique the owner even has "Bank" in his name.
Upstairs, the construction's so fresh the hallway's concrete subfloors are still exposed. But just past the bullet-proof door lies an electrically switchable display case full of glittering diamond necklaces, stunning gold rings and a silver astronaut MTV award. The conference room features rare Warhol sketches. And the chic offices sport a beautiful view of what Tabach-Bank wants to rise above: the garish signs of New York's diamond district.
Below, neon signs yell "LOANS!" while sad people walk around in sandwich boards emblazoned with "WE BUY GOLD!" And yet, even though we're high above the fray, it turns out what the new bank does is a very a old business: collateral loans, a.k.a., pawning.
"Banks are not lending as they once did," says Tabach-Bank. "As a result, pawnbrokers have been coined as 'the people's bank.'" But he wants to take this bank high-end and mainstream.
"If you have a mortgage against your home, it's a home loan--nobody is embarrassed by that," he said. "I don't believe you should be embarrassed by using a five-carat diamond ring either. Both are loans on assets that you own and are leveraging."
And you can leverage a lot. "Typically our loans are four- and five-figure loans," he says, "But we can also make loans of seven figures."