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New York, NY—Even the ultra-rich sometimes need to borrow a few bucks till payday. But instead of hitting up a friend to spot them $100, they typically have a few pricey baubles lying around to spare for collateral on a short-term loan—even one with seven figures.

Despite its discreet upstairs location, sleek décor, and the high-security double-lock doors typical of 47th Street, New York Loan Company is a pawnshop. And it operates much the same way the corner payday loan store does in a less affluent neighborhood, except its well-heeled clientele brings in Patek Philippes and Harry Winson diamonds instead of Grandpa’s old gold watch. Though it has and will make seven-figure loans on occasion, New York Loan’s typical transaction is about $10,000, according to a Bloomberg video tour of the company.

When affluent consumers—say, a Wall Street trader who made a bad margin call—need a few extra dollars, they bring valuable jewelry, art, and so forth to New York Loan. Depending on how confident (or hopeful) the customer is, the agency either buys the piece outright or takes it as collateral for a short-term loan at 4% interest. If the customer can pay the loan and interest back, they get their goods back. If they don’t, they forfeit it and it goes into the store’s inventory.

Most of the time, the customers do retrieve their goods, says the report. Only about 10% of the collateral is forfeited.

Then, of course, there's the "shop" half of "pawnshop." Indeed, shopping there can be a bargain-hunter’s paradise. The report shows a bracelet that typically retails for about $600,000 on sale for $350,000. As industry experts attest, it helps reinforce the intrinsic value of luxury jewelry—but it also is a sobering reminder that a quick sale is not going to net the original price for the piece’s owner.

Watch the Bloomberg video here.