Pawn Broking: A Long and Popular History

With the demand for pawn broking on the increase as banks face a reluctance to lend, Loan Purchasing is growing in popularity as an alternative method of collateral release. Now Loan Purchase the leading provider of instant loans is outlining where Loan Purchase first began and how it can help those in need.

Dating back to the earliest stages of the world, pawn broking has long been a profitable profession. For years people have required short-term loans, and it all began with lending money on portable security, which is one of the world’s oldest professions around.

Despite being originally frowned upon by the Church in the early days, pawn broking was used by Francescan monks as a way of helping the poor and Queen Isabllea even pawned her belongings to fund Christopher Columbus’s journey to the Americas.

Regulation of the pawn broking industry then came into effect during the 18th century when bills were passed through parliament that proposed a levy of one fifth of all interest should be paid to the workhouses and hospitals of the UK, which in effect warmed people to the idea of pawn broking and short-term loans.

It was here that the three balls became the official symbol of the pawnbroker. Usually printed in gold or blue, the blue colouring represented the medic’s coat of arms.

From the 19th century onwards, pawn broking shot to fame throughout the UK and further acts were introduced by parliament to regulate them, many of which were open until midnight- hours completely outrageous and unthinkable in today’s society.

Daryl Self, Managing director at the firm who offer short-term loans with a difference, said, “One of the most interesting facts about pawn broking I have ever come across is the fact that during the war, pawnbrokers were so busy with people pawning in household items for cash that they would get on average 3000 enquiries a week, which is phenomenal.”

As pawning in an item became seen as something one would prefer to keep quiet during the last few years, a market existed for a firm that provided all of the services of the high street pawn broker, but online and in the privacy of your own home, which is where the original idea for Loan Purchase first began.

Giving the customer the option to Loan Purchase their beloved items, no matter how large or small, Loan Purchase allows each customer the chance to buy back their item for a fee after an agreed amount of time, which can then be extended on a 28 day period at the discretion of The Company.

Turning tradition on its axis, the team at Loan Purchase also guarantees that when someone comes to them with an item of value, they will guarantee to Loan Purchase it, as long as all relevant documentation is completed and proof of ownership received, therefore providing financial relief to those unable to get credit from the banks due to the recent financial gridlock.

Mr Self, added, “After reading a number of articles about high street pawn brokers and cash converter type businesses thriving in this current climate, I realised that there was room for a niche company like Loan Purchase in the market. Although it is hard to predict what will happen to the industry in the future, it is sure to go from strength to strength, throughout the economic downturn.”