Pawnbrokers in Hong Kong are offering cash-strapped customers loans in exchange for their designer handbags.

Expensive arm candy often retains its retail value so companies feel safe using them as collateral for debts. Cash-poor clients - whose money is tied up in savings or the stock market - are generally allowed to borrow 80 per cent of their bag's value.

Customers are expected to pay back their loan within four months with four per cent added monthly interest. Once the debt is cleared they are given their handbag back.

Designer arm candy, such as Chanel and Louis Vuitton, often retains its retail value so companies feel safe using the bags as collateral on loans

The Wall Street Journal reports that the Yes Lady Finance Co., one of the companies that offers the scheme, will approve a loan within half an hour - as long the handbag is Gucci, Chanel, Hermès or Louis Vuitton.

Those with special edition or vintage versions of the 'big four' designers will even get better loan leverage.And it's not just women - one in five customers are men.

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All bags are rigorously checked for authenticity by second-hand designer goods expert Milan Station Holdings Ltd, which works closely with the company.

While most pawnbrokers take homes and cars, in Hong Kong handbags are also seen as a safer investment

An Hermes Birkin, which can cost up to £100,000 and is carried by Kim Kardashian and Victoria Beckham, was handed over in return for a £13,170 loan

According to The Wall Street Journal, 'almost all' of Yes Lady's customers, which translates to 'Rich Woman' in Cantonese, pay their loans back in full within
the four months and are reunited with their designer accessories.

It has been reported that a Hermès Birkin, which can cost up to £100,000 and is carried by Kim Kardashian and Victoria Beckham, was handed over in return for a £13,170 loan.