Changing Face of Pawn-broking in the UK

Pawn shops originated in China, some 3,000 years ago, acting as a way for struggling peasants to get their hands on cash. In the 14th-15th century, pawn-broking became a short term credit industry in the UK and noted families like the Lombard family became famous for money lending.

With over 2,000 pawnbrokers in the UK operating in a market valued at £930m, today this industry is the growth story of the credit crunch. UK pawn broking industry saw an annual growth of 8% because of the strong economic winds blowing in its favour – falling incomes and most banks deciding to back away from the riskier end of the personal lending business.

The stigma earlier attached to pawning assets to raise cash is now removed because of the joint efforts of NPA, FAC, and honest online pawn-brokers . A research conducted by NPA in 2013 showed that only 4% of the people availed pawn-broking as a credit option and 27% were willing but were unaware of the process. The traditional taboos of pawn-broking have also been removed and innovated marketing of this age-old credit source is increasing its customer base.

Unbolted is an online personal asset financing service in the UK that has set incomparable standards of fairness, excellence, and professionalism in this industry. This e-business model brings together the best aspects of pawn-lending and peer-to-peer lending in the most efficient way. The technology is used to deliver a transparent, low-cost, and convenient alternative to other opaque and high-cost competitors. If you compare the annual percentage rate for a £4000 loan, you will find that it is as low as 33.1% for Unbolted when for other competitors it ranges from 69.0% to 101.6%.

Loans from Unbolted include no credit checks, no hassles in delivery of asset to pawn-shop, and the cash is available straight away. From Gucci hand bags to value of what is in the safe, you can use your assets to avail loans at the best rate from Unbolted. And dealing with Unbolted ensures full safety of your asset and privacy about the deal. In case of default, your liability is limited to the asset pawned. Moreover, excess realised on selling the asset over the loan amount, is also refunded to the borrower.

With promotion of pawn broking by rise of TV shows focussed on pawning of high-end, luxury goods like Pawn Stars UK, Posh Pawn etc. and consumer friendly terms offered by firms like Unbolted, the viability of pawning assets as a credit source has increased in the eyes of the common man. The large number of loans made by Unbolted in the last few months clearly shows that the middle class is now all willing to use their assets to get rid of the credit crunch.

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