A Brief History of pawnbrokers in London
What Is Pawnbroking?
A pawnbroker will give fast loans in return for an item of significant worth, which acts like a guarantee; for example, a cash loan secured against jewellry, antiques or coins and bullion.
“Pawn” is gotten from the Latin ‘pignus’, which means vow. Things that have been pawned are called vows or pawns.
After the loan time frame, the pawner (or customer) gets their item of significant worth returned back to them by essentially paying back the measure of cash lent to them with pre-agreed interest included.
Loan periods and interest rates are administered by the law, so the procedure is fair, basic and exceptionally direct.
What Happens If The Loan Is Not Repaid?
On the off chances that the loan is not paid within the concurred period, or the loan time frame not extended, the pawned item can be offered available to be purchased by the pawnbroker. From the money raised after the offer of the item, the account will be settled and if there is any cash left over, this sum will return back to the customer.
The UK’s Historical Legacy Of Pawnbroking.
● Pawnbroking is the most seasoned type of secured lending accessible to man and goes back more than 3000 years.
● Edward III of England was said to have frequently utilized pawn shops as far back as the fourteenth century. Charles first established his own pawn bank to fund the civil war against Cromwell. Notwithstanding, under the commonwealth, when he defeated Charles first Cromwell, decided to break down all pawn shops in the UK.
● Christopher Columbus made his epic revelation of the Americans financed by Queen Isabella, who pawned her royal jewels to make the journey possible.
● The Bank of England, built up in 1694, was to some degree a state run pawnshop. Some other information unmistakably portrays the foundation of a banking system that we today would promptly perceive as pawning.
The Three Golden Balls
Amid the medieval times Lombard banks, an established financial institution was the earliest unmistakable and organized chain of pawnshops. The emblem of three golden balls was utilized as their symbol and was initially hung at the front of their merchant stores, to indicate their work as a Lombard (or pawn) bank. The three balls were initially thought to represent gold coins and since this time, it has turned out to be synonymous with the pawnbroking industry.
What Are The Advantages Of Using A Pawnbroker?
There are many advantages. They can agree your loan promptly; there is no requirement for a credit check, and in the event that you fall on difficult times and default on your repayment, this won’t influence your long term credit rating.
Today’s pawnbroking customers range broadly. Surely they are ordinary people, who may wish to borrow a sum of money for a brief timeframe. Particularly like an overdraft is used, the service is a genuine ‘hold me over’ until payday circumstance. With an ever increasing number of people paid month to month, the pressure on managing short-term cashflow turned out to be more difficult than when week by week brown paper wage bundles were the standard.
Pawnbroking customers vow property that they own and consider the loan essentially transforming their goods temporarily over into money as they once were. In other words, customers feel they are essentially, basically, borrowing from themselves.
Straightforward, no favours, no extending or making unsecured credit with the danger of negative credit ratings or “boycotting”, as it is known whether the loan is not repaid. Completely secured, direct and straightforward credit in minutes – and from themselves. No wonder such a large number of customers and regulatory bodies see pawnbroking as ‘simply one other method for borrowing money’.