Pawn shops are history's oldest financial institution, they carry on a tradition with a rich history.
Pawnbroking can be traced back at least 3,000 years to ancient China, and has been found in the earliest
Greek and Roman civilizations.
In the Middle Ages, the Church prohibited the charging of interest on loans. This limitied pawnbroking
to people who were not Christians. Out of economic necessity, and because of problems in the banking system,
pawnshops made a resurgence in later years. The House of The Lombards operated pawnshops throughout Europe.
Even King Edward III of England was a client during the 14th century. The present day pawn shop symbol of
three gold balls was derived from the the Lombards' operations.
Pawnbrokers, also known as collateral loan brokers, make loans based purely on the value of
the item (collateral). The customer's credit history is not at issue because only the value of
the item being pawned is considered. If the loan, or at least the interest, is not paid off during
the specified term (usually three or four months), the item may be resold by the
broker.
A typical pawn transaction begins with a borrower coming into a pawnshop with the item he or she
wants to pawn. The pawnbroker then determines how much to loan the patron for the item, based on the
value of the item. A typical Loan is 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 a good during the worst of times. This assures that a profit
will be made.
Pawning has long been a source of capital for people in times of need, as well as a means of financing
business ventures. Today, statutory regulations of banking and finance are based on the legal
foundation established by pawnbrokers. Many of the first leaders in the banking industry had roots
in pawnbroking. As was the case 3,000 years ago, pawnshops continue to be a source of convenient
credit for individuals in need of a short-term loan.
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PAWN SHOPS ADVICE: There are many pawn brokers through-out the U.S.A. In the past pawn brokers have had a negative repuation.
But in recent years, with the downturn in the U.S. economy, pawn shops in the U.S. are filling a need that
is helping many pay their bills. When visiting a pawn shop in the U.S. , we recommend that you are educated about
the item you are wishing to sell. Prices offered by pawn shops in the U.S. can vary from one store to the next.
Understand that if you get a loan from a pawn shop, the pawn broker will hold your item until you fully pay off the loan.
as collateral until the loan is paid off. Make sure you are comfortable with the silver buyers security before
you leave your item. silver buyers are HIGHLY regulated in each state that they operate and you can be conmfortable
dealing with most Pawn Brokers. |
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SELECT YOUR STATE:
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LIST OF PAWN SHOPS FAQS
http://www.ezcashofpanamacity.com/faq2.html DAILY PAWN SHOPS FACTS | |||
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(C) 2010 PAWN SHOPS DIRECTORY |
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