Popular Economic Credit (CEP), an entity specialized in loans secured by the pledge of gold, silver and jewelry objects, recorded a credit portfolio volume of 19.2 million euros on September 30, a value that represents an increase of 18% compared to the same period in 2024. On the same date, recorded 16,439 active contracts, a year-on-year increase of 2.3%. At the end of September, the lender accounted for a portfolio of 32,382 customers, an increase of 4%. This performance “reflects the growing confidence of the Portuguese in the pledge as an alternative for immediate liquidity”, explains Isabel Teixeira, general director of CEP. And also the confidence of families and small businesses in this model to obtain working capital, benefiting from the “constant appreciation of gold and silver”, he highlights.
According to the person responsible, gold represents the most significant share of the CEP’s credit portfolio. This metal, which has appreciated by more than 41% since the beginning of the year, is responsible for the majority of contracts and the amount lent by CEP. “Open credit is based on gold in a percentage of 98%” and the remaining 2% is made up of silver, jewelry and, more recently, watchesreveals Isabel Teixeira. As stated, CEP has been diversifying its pawn offering to include “high-value watches and branded jewelry, following new trends and customer needs”.
In the CEP, loans on pledges are sought after by people with an average age of around 45-50 years, from individuals, small business owners or traders, as a response to unforeseen events or specific cash needs or even to take advantage of opportunities for which they do not have liquidity, he says. These clients do not want to “compromise assets or resort to traditional debt”. Those who use CEP want “a quick, bureaucracy-free, safe and confidential credit solution”and avoid registration with the Banco de Portugal credit center, says the manager.
Isabel Teixeira guarantees that customer default levels are low. In situations where the duration of the delay and the amount owed in relation to the guarantee exceeds the contractual requirements, the CEP puts the pledged pieces up for auction. At this time, there are “no auctions” scheduled. For the person responsible, the pledge model “prevents over-indebtedness”as the loan amount never exceeds the value of the asset given as collateral. As he states, “whenever there are difficulties, we favor a personalized and flexible approach, adjusting payment conditions to help the client regularize the situation and recover their assets”.
CEP currently has 16 agencies spread across the country and wants to continue expanding the physical network. After all, “the pledge-secured credit business has high growth potential, as shown by last year’s results”, highlights Isabel Teixeira. The person responsible argues that it is a “flexible, safe and transparent alternative to traditional credit” and, increasingly, “valued by families and small business owners, especially in a more demanding economic context”. The manager highlights the system’s facilities: “It is possible to obtain credit on the same day, without extensive asset investigations or creditworthiness assessment, without guarantors”. The rate is “better than the maximum rate on credit cards” and to obtain a pawn loan all you need is personal identification and precious metals.
Isabel Teixeira also recalls that the credit business secured by pledge in Portugal is regulated by the Bank of Portugal and falls within the activities of guaranteed credit. It is subject to national and European legislation that regulates credit, money laundering prevention rules, as well as strict standards for the evaluation, custody, security and management of pledged assets.
The CEP was acquired in the year of the Capital Cross. This group is headquartered in Milan and is listed on the Euronext Growth Milan segment of the Italian stock exchange. In addition to Portugal, it is present in the country of origin and in Greece, where it operates under the ProntoPegno brand.