RAPAPORT… New York jeweler Kwiat will partner on a project to offer collateral-based funding to the Indian gem and jewelry industry.
The retailer will implement the program, called FlexFin, together with cutting-and-polishing firm K. Girdharlal. The Indian manufacturer will be responsible for taking in and valuing all merchandise offered as collateral, Kwiat said last week.
Customers can choose to use diamonds, jewelry or watches as collateral for a short-term loan. They can then repay the loan or opt to have Kwiat, or its subsidiary, Fred Leighton, sell the item for them.
FlexFin “provides a unique and viable option for companies looking for short-term capital, as well as those with large, valuable inventories uninterested in, or unable to obtain, traditional bank loans,” Kwiat noted.
“Adding liquidity to the diamond market in this win-win scenario is very exciting to be a part of,” added Kwiat chief operating officer Russell Kwiat.
Image: An Indian manufacturer polishing a diamond. (Shutterstock)
Jeweler Kwiat to Provide Financing to Indian Trade
The Bottom Line
- Kwiat and K. Girdharlal will offer short-term loans using diamonds, jewelry, or watches as collateral through the FlexFin program.
- K. Girdharlal will handle intake and valuation of collateral items within the Indian market.
- Borrowers can repay loans or have Kwiat or its subsidiary Fred Leighton sell the collateralized items on their behalf.
More Stories
Adobe Expects Online Holiday Shopping to Reach Record High
Spending likely to rise 7% year on year to $275.1 billion.
Small Diamonds Lead Price Gains in September
1-carat RAPI rises for second straight month.
Frederick Goldman Promotes Two to Top Executive Roles
Bryan Cohen will be chief operating officer and Tom Schwartz chief marketing officer.
