People Are Turning to Pawn Shops for Cash
With banks tightening, and credit and jobs hard to come by, more and more people are turning to one of the oldest ways of getting quick cash.
This is not surprising, considering how unhelpful the high street banks have become during the credit crunch. What is surprising, however, is the changing image of the pawnbroker.
In the 19th Century, there used to be more pawnbrokers than public houses in the UK. Then, along came the welfare state, and many people found they didn’t need the kind of financial services they could get at the pawn shop any more.
These days, the image has changed - radically! Now, it’s the traditional lenders who are seen as the shady characters - misselling secured and unsecured loans that they know people can’t afford, then piling on the admin, setup, early settlement and late payment fees - along with punitive default penalties if people can’t repay their loans.
When you add compound interest to all these traps, you can end up with something much more expensive - and dangerous - than a pawn loan.
A pawnbroker will never missell a loan that you can’t afford to pay back - one way or the other. Even if you decide not to pay off your pawn loan, a pawnbroker will never need to involve credit rating agencies, debt collectors, court actions, bailiffs, asset seizures or repossessions - ever!
A pawnbroker will never hike your interest rates during the period of a loan - no matter what the Bank of England base rate is doing, or whatever changes there are in government policy. You always know exactly where you are with a pawn loan!
Borro.com, the world’s first online pawnbroker, has thoroughly modernised the process of asset-backed lending. A Borro loan is discreet, convenient, safe – and fast! Borro.com often lends £100 - £100,000 within 48 hours of application.
You can pay off a Borro loan whenever you want - with absolutely no risk of being charged a punitive early settlement fee. You only pay interest on a pawn loan during the time you actually use the loan, so it’s the ideal way to raise a fast, short term loan for 1 to 6 months (which, with Borro.com, is extendable by mutual agreement).
If you need fast cash, if you need easy cash at low rates, visit Borro.com. Whether you want a personal loan, a small business loan, a debt consolidation loan, a student loan, a car loan or a bridging loan, if you have appropriate collateral to pledge as security, you will always get a collateral loan from Borro.com.
For an affordable short term loan in the form of a low interest rate loan, check out online pawn shop, Borro.com. Visit leading online loan provider, Borro.com, today, for a cheap, no risk loan, or call us, free, on 0800 756 9877.
Buying Diamonds at a Pawn Shop
Buying diamonds at jewellery pawn shops in the UK is common. People that have cash come in for the bargains, those that need cash visit jewellery pawn shops to get a loan on diamond jewellery.
Find surprisingly good bargains at jewellery pawn shops
What you may not get at a jewellery pawnshop is a comprehensive range of diamonds or the top quality, clear diamonds that you may find at a mainstream diamond jewellers. Many people equate jewellery pawn shops with low quality, but this is often an unfair and illogical perception. To understand why, you have to understand how pawn shops work.
A pawn shop’s primary business is to lend cash, not to deal in second hand goods.
As a result, in order to encourage customers to pay off their loans, jewellery pawn shops only loan out a relatively small proportion of the second hand value of the item it loans against - including diamond jewellery . Because of this, typically more than 80% of a pawn shop’s customers will repay their cash loan, and reclaim their jewellery. However, in the rare cases that a pawn shop customer chooses not to pay off their loan, the pawn shop has a good safety margin on the jewellery held as security for the loan, and can afford to offer a good second hand price on the open market to repay the cash loan. So, if you look in a jewellery pawn shop window, the question may not be “Is there a good deal in the window?” For the reasons stated before, you will probably see a lot of good deals in the jewellery pawn shop window. A more intelligent question will be “Is there anything that interests me in the pawn shop window?” If there is, if you are looking for diamonds, and if the pawn shop has the kind of diamonds you are looking for, you will more often than not find a good second hand purchase deal.
Buy and Sell Jewellery at a Pawn Shop
Buying jewellery at a pawn shop may be a good deal, whereas selling jewellery to a pawn shop may not. In order to understand why, you must first understand that a pawn shop is primarily in business to loan money, not to sell second hand goods.
A pawn shop would much rather you pay off your loan than sell your jewellery, and as a result, the pawn shop will only advance a proportion of the second hand value of the item you pledge in order to secure the loan from the pawn shop. As a result, more than 80% of pawn shop customers pay off their loans and reclaim their goods. So, the items you see for resale in the pawn shop window represent only a small percentage of the goods they loan against. In the rare case that a borrower fails to pay back the loan to the pawn shop, the item will be resold by the pawn shop in order to recover the loan. In these cases, you may see some attractive bargains in the pawn shop window in relation to jewellery, precious metals, gemstones, antiques, fine art & memorabilia, but don’t forget that the pawn shop’s main business is advancing loans.
So, the best deal you may get from the pawn shop may be a quick, flexible short term loan, while the next best deal may be an attractive deal on an item in the pawn shop window. On the other hand, the pawn shop may not be the best place for you to sell something second hand.
Pawn Shop Items for Sale
Pawn shops typically displays second hand jewellery and watches in their shop window, but sale of second hand goods is only a small part of the pawn shop’s business. Those who borrow cash from a pawn shop often pledge gold, silver & platinum items, as well as rings, earrings, brooches, necklaces, bracelets, gemstones and branded luxury watches in exchange for a cash loan from the pawn shop. But the items in the pawn shop window represent only a small fraction of the goods they loan against.
Most customers who get a loan from a pawn shop pay off their loan, and get their goods back from the pawn shop. Pawn shops are primarily in the business of lending cash, not trading in second hand goods. More than 80% of a pawn shop’s customers pay off their pawn shop loan, and get their goods back. So, although you may see a lot of gold, jewellery and watches in the pawn shop window, the pawn shop will have many other items in their vaults awaiting redemption by borrowers. These items often include antiques, works of fine art, memorabilia and even luxury cars such as Ferraris and Porsches and luxury yachts. These sorts of items tend to appear less often in pawn shop windows, as they tend to be more highly valued by borrowers, who are therefore even more likely to pay off the cash loan from the pawn shop. However, there is no doubt that bargains can often be found at the pawn shop, particularly in relation to the more common pledges such as gold, jewellery, precious metals, gemstones and luxury watches.
Getting a pawn loan
Getting a pawn loan online is fast, easy and discreet. No credit checks and no interviews with the bank manager are involved in negotiating a fair pawn loan, and it is a lot safer and cheaper than dealing with a payday loan company or short term unsecured UK loan provider.
The reason why getting an secured loan with an online pawnbroker is so easy is because you send valuables, such as jewellery, gold or watches, to the pawn broker in order to secure the loan. As the loan company has security for their loan, their risks are reduced, they can afford to reduce their interest rates, and this reduces the overall cost to you of the pawn loan. There are many other benefits of pawn loan to consider. Even if you have a bad credit rating, you are still guaranteed to get a pawn loan, as long as the valuables you pledge cover the loan company’s risks.
And if you have a good credit rating, a pawn loan is a no-hassle way of easing short-term cash flow problems without any risk to your credit rating or overdraft - even if you ultimately fail to pay off the secured loan. Borro.com is the world’s first online pawn shop, providing fair pawn loans in London, Oxford, Essex, England and throughout the UK.
Negotiating an online pawn shop is much more convenient and discreet than dealing with other UK pawnbrokers The whole pawn loan process is managed end-to-end from the comfort of your computer at home, and online pawn loan companies like Borro.com provide a much more competitive valuation service and pawn loan to value ratios than the average high street pawn loan provider.
Pawnshops in London
None of the pawnshops in London is an online pawnshop. The world’s first, and - at the time of writing this article - only online pawnshop is Borro.com, and this online pawnshop operates out of Oxford, not London.
The idea of an online pawnshop would be incomprehensible to those who started the first pawnbrokers in London but with the launch of Borro.com an online pawnshop is available everywhere in the UK - and not just in London.
London pawnshops invariably display the famous three golden balls - reflecting their origins, which trace back hundreds of years to the Lombards and Medicis of Italy. However, when Borro.com decided to launch its online pawnshop in July 2008, it avoided the traditional pawnbroker’s mark in order to signal a new image - free from the outdated and unfair 19th Century associations from which high-street London pawnshops often suffer.
So, what does an online pawnshop offer that a traditional London high-street pawnshop cannot? An online pawnshop is fast, easy and discreet, and is accessible anywhere a borrower has access to a computer. By comparison, there are only around 500 pawnshops on high streets in the UK, and less than a quarter of those are based in London. None of these pawnshops is an online pawnshop.
If you want to experience a new way to lend, try an online pawnshop. An online pawnshop reaches the places that high-street shops can’t reach, and this has absolutely nothing to do with Heineken. Anywhere your computer goes, your online pawnshop goes with you, whether you are looking for an online pawnshop in London - or whether you are trying to find an online pawnshop service anywhere else in the UK.
UK Pawn loans online
As we continue to suffer from the credit crunch, increasing inflation and falling house prices, more and more of us are turning to UK pawn shops.
There are over 500 UK pawn shops, and recently Borro.com became the first ever UK pawn broker to launch a fully on-line pawnbroking service to those seeking a reliable UK pawn loan. UK pawn interest rates may be more expensive than banks or building societies, but it is much easier to raise a loan from a UK pawn broker. A UK pawn loan will cost you a lot less than an equivalent loan from a payday loan company or an on-line short term unsecured loan provider. Because a UK pawn loan is secured by valuables lodged with the pawnbroker, UK pawn brokers don’t need to run credit checks, and UK pawn brokers don’t report defaulters, even if the loan is not paid off.
Dealing with a UK pawn broker on-line, like Borro.com, is fast, easy and discreet. The typical UK pawn broker on the high street may not be conveniently located near everyone, and the storefront image of some UK pawn brokers may not inspire a great deal of confidence. Also, the valuation processes of many high street UK pawn brokers may be much more simplistic than Borro.com, who provide very competitive loan to value ratios.
Until now, the traditional image of UK pawn brokers has been stuck in the 19th century. Now, on-line UK pawn broker - Borro.com - is offering a new way to lend. Check out the world’s first on-line pawn broker, the leading on-line UK pawn broker, Borro.com.
