Pawnbrokers trade cash for personal property and make high-interest loans collateralized by the borrower’s personal property
The pawn business dates back to ancient Rome. Today, there are over fourteen thousand pawnbrokers nationwide. Last year pawnbrokers transacted over thirty-five million loans. The interest rates on such loans are extremely high and the loan terms highly favor the pawnbroker. Notwithstanding, pawning has long been a source of needed cash for people in times of financial hardship.
Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments. Typically, loans are paid out at a rate of about one-third to one-half of the price the broker can expect to receive for the sale of the property. Many others use pawn brokers to quickly liquidate their valuables such as jewelry, weapons, musical instruments, and electronics.
