PAWN OF A NEW DAY

Pawnbrokers have long suffered a poor reputation, but in these troubled times, confidence in the traditional forms of lending is low, with less than 4 in 10 people saying they would trust their bank to help them’.

People are increasingly looking at other ways to raise cash should they need to. For example, the majority of people would consider selling an item of value they owned to raise funds, although interestingly, if they could, most would consider taking a loan against their valuables rather than sell them.

However, when asked specifically about ‘Pawnbroking’ in a survey by Borro.com the online pawnbroker, the majority said they wouldn’t consider taking out a pawn loan, which confirms a major image problem with the Pawn Industry. With characters names such as ‘Arthur Daley’, ‘Fagin’ and ‘Del Boy’ springing to mind, only 4.5% of respondents had a favourable impression of pawnbroking.  And as many as 2 in 10 are put off simply by the name because it sounds like PORN.  

One aspect of this is the need to go into a store and carry out the transaction face to face as nearly a half of respondents said they would be more likely to take out a pawn loan if you could discreetly complete the transaction online. “High street locations seem seedy” was a common response.  This could be a reason why some people resort to door-step lending, not realising they are subjecting themselves to ridiculous interest charges.

The survey suggests that people are not only open to different forms of lending, but with nearly 1/3 of respondents already planning to borrow in the next 12 months and the tightening of access to credit from traditional sources squeezed, it will become a necessity for many people.

Borro.com is reporting a growth in business, with around 75% of its customers being new to pawnbroking.  Customers can complete a transaction online or make an appointment to see a valuation expert in an office environment.