Category: Pawnshop London

What is a Pawn Shop?

What is a Pawn Shop

The origin of a pawn shop can be traced back to 3,000 years when the practice of acquiring credit was common among the peasants. Pawnbroking is one of the oldest professions of the world. Individuals from all walks of life have utilised the services provided by pawnshops throughout the history. While the business model of a pawn shop was once misunderstood, it flourished today as a significant alternative to any other traditional ways of borrowing cash.

In fact, pawnbrokers have a long and highly esteemed history of helping people as well as businesses in financially distressing condition.

How does a pawn shop work?

For many years, people across the world have confronted one problem in common from time to time, and that is, the need for quick cash. A pawn shop is a convenient and absolutely, a legitimate place to secure credit loan right away keeping anything of value as collateral. Unlike banks or other traditional lending institutions, a pawnbroker provides a pawn loan without carrying out any credit check.

A pawnbroker determines the amount of cash loan that he/she is willing to offer, based on the current market value and other relevant factors of the asset kept as collateral. If you accept to go ahead with the agreement, the pawnbroker will provide you with a credit agreement and keep your asset safely in secured vaults until you retrieve your item paying off the original loan amount and the due interest.

A Brief History of Pawn Shops

As per the Chinese records, the practice of pawnbroking can be traced back to the beginning of the Western Han Dynasty in 206 BC. While pawnbrokers were significantly more generous in comparison to the modern Western pawn shops, borrowers were able to take up to three years to repay their loans at the fairest interest rates.

The process of pawnbroking started to bloom during the Middle Ages. Pawnbroking was introduced in England by The Norman Conquest, while the Lombardy region of Northern Italy became identified as the seedbed of pawnbroking. A pawn shop is often referred to as ‘Lombard’ in Europe and ‘Lombard Banking’ was a universal term for pawnbroking.

With the condition of lending money at the modest rates of interest, the Catholic Church approved many old pawn shops to work for helping the poor. In the late 19th century and early 20th century, the number of pawnbrokers increased as much as public buildings in Britain, lending money on virtually anything from bed linen, cutlery to the best wardrobes.

It was not that long ago when pawnbrokers were negatively portrayed in the press. The image of pawnbrokers has dramatically changed, especially over the past twenty years or so and today, many people depend on a high street pawnbroker to help them meet their short-term financial needs.

The Process of Pawnbroking Today

When you walk into a pawn shop to take out a cash loan against a luxury asset, the pawnbroker will assess your item explicitly to determine an accurate value based on its overall condition and the current market price. Your pawnbroker will provide you with a credit loan for a specific term without checking your credit history. While there is no minimum period for a pawn loan, the maximum tenure is generally six to seven months.

You can reclaim your asset by paying off the full loan amount along with the interest that was agreed upon by the end of your loan term. Although any trustworthy pawnbroker in London or any other big city usually offer 14-days cooling off time to draw out an agreement, the asset kept as pawn will become the pawnbroker’s property if you do not wish to retrieve within the time mentioned above.

For those who are unable to redeem their item, a pawnbroker may help to get a new contract, extending the loan term. You will only have to pay back the interest you owe.

Although the rules and regulations governing the pawnbrokers may vary from place to place, all pawnbrokers are today heavily supervised and required to get a license for trading from the Financial Conduct Authority.

If you are looking to raise instant cash and own something valuable, begin your search online and choose a reliable pawnbroker in London or anywhere in the UK to secure a pawn loan without any hassle.

5 Interesting Facts You Probably Didn’t Know About Pawn Shops

5 Interesting Facts You Probably Didn’t Know About Pawn Shops

Pawn shops first turned up more than 3,000 years ago. A pawn shop used to provide credit to the peasants while being regulated by Imperial authorities. While pawnshops once had an ugly disgrace for taking advantage of the poor, its business model was also misunderstood. The upturn in the pawnbroking industry came during the 1980’s credit boom, and it continued to thrive today serving as the most convenient way to raise cash in short-term financial needs.

Pawnbrokers, including your trustworthy local pawnbroker in London, come with a fascinating historical background. If you are interested to know, take a look at some of the facts given below that you probably did not know about pawn shops:

1. Pawnbroking for voyage

Queen Isabella of Spain was reportedly known to have pledged her crown to fund the first journey of Christopher Columbus to the New World in 1492. Recently, this notion has been deflated, and it is said that Queen Isabella already had pawned many of her jewellery before Columbus was ready to sail.

The pawned jewellery items of the queen included a necklace adorned with ruby and pearls that she received as a wedding gift from King Ferdinand and the crown of Castile. While Queen Isabella pawned her jewellery to pay for the campaigns against the Moors and to raise money for the Spanish Inquisition, it is also believed that she may have pawned some small pieces to Columbus. This was an endorsement that brought many other investors like the Santa Hermandad Police Organisation.

2. The Patron Saint of Pawnbrokers

The patron saint of pawnbrokers, Saint Nicholas preserves a legacy as one of the most kind-hearted human beings to have ever existed on the earth. As the story goes, Saint Nicholas who was known for his benevolence gave three bags of gold each to three impoverished girls so that they could get married.

It is also often believed that he dropped the bags in secret, down the chimney so that no one could know the benefactor.

3. The Symbol of Pawnbrokers

The three gold spheres hanging from a bar is the international symbol of pawnbrokers. While there are many stories related to the origin of this symbol, some people associate it with the famous Medici family of bankers, monarchs and also, Popes.  As the legend goes, a member of this clan killed a giant with the help of three bags of rocks.

Some believe that the three balls represent these three bags of rocks, while others say the three spheres are symbolic of the story of Saint Nicholas and his three bags of gold.

4. The Pawn song ‘Pop! Goes the Weasel’

The nursery classic ‘Pop Goes the Weasel’ dates back to at least the mid-19th century. In one of the British versions, the song seems to be tied to pawnbroking.

Take a Look at these lines:

‘Up and down the City Road

 In and out of the Eagle

That’s the way that money goes

Pop! Goes the Weasel’

Here, the word ‘Eagle’ may refer to the popular Eagle Pub of London and ‘weasel’ has been assumed to be the ‘Cockney slang’ for jackets. Thus, the song may indicate that a patron has spent much on alcohol and so, had to pawn his coat.

5. Jewellery is the most common pawned item

Although the assets accepted as collateral may vary from one pawnbroker to another, the most common item that people consider to pawn and also universally accepted is jewellery. Gold, silver, diamonds and other precious gems possess inherent value.

Moreover, jewellery items often bear a sentimental value, and it ensures that customers will return to reclaim them by paying off the loan amount and the interest due.

Should I Sell My Jewellery to a Pawnbroker?

sell your jewellery

Many of us had experienced an unanticipated time in our lives when we required some money at short notice for different reasons. While there are many ways to raise some extra cash, people in today’s society realise the benefits of using the more convenient services rendered by a pawnbroker to get money.

Like many others, you may have some jewellery items that you loved once but for whatever reasons you no longer need or want them. You may have your Grandma’s vintage diamond ring that you never actually wore, while others may have some gold necklaces and bracelets that are out of style or broken. Whatever may be your cause, selling jewellery straight away and acquiring cash in exchange for them often appears to be the most convenient thing to do rather than enabling them to sit around your house and collect dirt.

But when it comes to choosing the most straightforward way you can avail when selling your jewellery, you may wonder:

‘Is selling jewellery to a pawnbroker the best option for me?’

If you are having a tough time deciding whether it is better to sell your jewellery to any high street pawnbroker in London or walk into a local jewellery shop, have a look at the benefits to sell jewellery at a pawn shop, be it is online or via appointment to get the most out of your time as well as your valuables.

  • Flexibility

While most of the jewellery shops look for jewellery items that are in mint condition, pawnbrokers serve as a more flexible option when it comes to obtaining cash for gold or selling diamond jewellery. Although many essential aspects are taken into consideration like the condition, age, weight and many others to determine the actual value, a trustworthy local pawnbroker always aims to provide its customers with the best market price, often based on the inherent value of a jewellery item.

Whether you want to sell a vintage gold ring that is in poor condition or sell your engagement ring of a designer collection, you can sell your jewellery securely and straightforwardly to an experienced and reliable pawnbroker, obtaining the highest value possible for your asset. Many high street pawnbrokers in London offer a viable online platform to sell jewellery quickly and more comfortably from anywhere all over the UK.

  • Value

A professional pawnbroker continually monitors the ever-changing market prices of the precious metals like gold and platinum; thereby evaluating a buying price accordingly that may be more than the value a high street jewellery shop offers.

As with any jewellery item, the final price of your asset that your pawnbroker is willing to provide will be based on the value of the precious metal and gemstones like diamonds, emeralds or rubies (if any), regardless of its age or style.

  • Fast transactions

When in dire need of quick cash, it may often feel embarrassing to wait for a jeweller to examine and evaluate an asset, carrying out surprisingly a slow process. Although a pawnbroker assesses every factor precisely to determine an accurate value, you can receive a price quote in less than no time by directly calling or filling up an online form.

With a reliable high street pawnbroker, you can rest assured to carry out transactions of any size quickly and securely both online and visiting the premises (by appointment). Once you agree to the final offer, your pawnbroker will pay you right away.

Pawn or Sell: What is the best option for you?

Pawn or Sell

When you need fast cash either to meet your temporary financial needs or to fund on something more valuable, procuring a quick loan from your nearby bank may not be a convenient option, especially if you have a bad credit score.  In such instances, visiting a high street pawnbroker in London or anywhere in the UK may be one of the best solutions, usually for two reasons:

One, you have the choice to secure an instant pawn loan against any luxury asset

Second, a pawnbroker also offers you the opportunity to sell anything valuable outright.

With the consistent downturn of the economy, more individuals are discovering the advantages of using the services rendered by a pawnbroker to come through the tough times. However, many novices are not aware of the difference between securing a pawn loan and selling.

Although both the methods can aid you in raising the money you need, you may wonder:

‘Should I pawn or sell my valuables for cash?’

While there is no specific answer to this question as it depends on many aspects, it is foremost crucial for you to apprehend the difference between selling and pawning. Take a look at the points given below that clearly outlines both these processes, helping you to determine what the best option for you is:

Ownership

When you decide to pawn your asset with a pawnbroker, you are using the item as collateral for your pawn loan. As with any collateral loan, the pawnbroker will hold your asset until you repay the original loan amount along with the due interest. Whether the item you pawned is a family heirloom or something with sentimental value, you can reclaim your asset once you pay off the loan.

On the contrary, when selling an item to a pawnbroker, you bring in your asset to sell and leave with money in hand outright, losing your ownership. While you agree on the amount that the pawnbroker is willing to offer when buying your asset, you walk out without having any further obligation to the buyer.

Feasibility

When you own a Rolex watch or anything valuable like gold, it is likely that their value will increase with time or age. Although you may acquire less value when pawning an item compared to selling, you retain the right to retrieve your asset whenever you want or after your loan term expires, by paying off the loan.

You can use your asset as collateral to obtain another pawn loan in future when you need to raise quick money.

Money

Pawning and selling a luxury item can help you to get immediate access to cash, while one of the significant advantages of selling is that you may secure a higher value in comparison to pawning. Thus, when you require enough money and do not mind to part with your asset, it may be more convenient for you only to sell.

While you do not have to worry about repaying any loan interest or other charges (if any) you owe when selling, you may get the money you need on the spot by selling something that you no longer need.

Should You Pawn or Sell Your Asset?

As already mentioned, in short-term financial emergencies, both pawning and selling a luxury item can help in turning up fast cash without any hassle.

But, an individual ultimately has to decide on its own what option is best for him/her when it comes to pawning versus selling. While you may feel it is better to sell your asset outright and avoid any charges or interest associated with a pawn loan, others may not wish to part with their valuables.

If you have a luxury asset that is moderately damaged and may not reap benefits in the long run, you can choose to sell turning your unwanted item into cash. Conversely, when you own an asset whose value may enhance with time, pawning can indeed be the best option.

Whatever option you decide to choose from, it is always essential to get in touch with a trustworthy pawnbroker in London or other big cities to have a hassle-free experience.

A Comprehensive Guide to Reclaim Your Pawned Asset from a Pawnbroker

Comprehensive Guide to Reclaim Your Pawned Asset

When people get desirous of fast cash to bring home the bacon, they often resort to pawning anything valuable like a Rolex watch or even Grandmother’s wedding ring with a pawnbroker. The old way of pawning personal luxury assets to get money quick continues to be on the uptick in today’s society, and more people recognise the benefits of the services rendered by a pawnbroker.

Ideally, a pawn loan is a convenient and legitimate way to raise money when in a bind. Without the need to lose your asset and mess with your credit, you can acquire the cash you need on the spot, leaving anything valuable you own as collateral. You retain the right to retrieve your asset within your contract tenure or after the term ends, paying off the original loan amount and the due interest.

While a pawnbroker provides you with the opportunity to retrieve your valuables whenever you want, one may wonder:

‘What happens if you do not come in to redeem your item?’

Although the terms and conditions of a pawn loan may vary from one pawnbroker to another, there are some basic rules and regulations that any trustworthy local pawnbrokers in London follow regarding the loan procedures and retrieving the pledge in time.

Know your options

When in dire need of cash, many people walk into a pawn shop to use their luxury item as collateral for a pawn loan. A pawnbroker evaluates every detail of the asset precisely and comes up with an accurate valuation according to its current market price. While a pawnbroker does not carry out any credit check when approving a loan, he/she may only ask for a valid proof of ID to get into an agreement.

Also Read: Tips on pawning your diamond jewellery

 

The maximum loan tenure is usually six to seven months, and the borrower has to repay the original loan amount along with interest to get back their item. But, in instances, when you are unable to draw out your agreement within time, this guide may help you significantly to reclaim your asset:

  •   Know about the loan terms beforehand

Although a pawnbroker often serves as a more convenient and reliable way to get instant cash for meeting short-term financial needs, it is pre-requisite for an individual who is willing to pawn their asset to be aware of the loan process along with its terms and condition.

A pawn shop may have some unique rules to follow, and thus, it is essential for you to apprehend the entire process and all the significant points, including the maximum loan tenure, extension period after the expiration of the contract, interest rates, default terms, methods of payments and others.

This information will aid you to get organised while enabling you to opt for a pawn loan conveniently and with peace of mind.

  •   Paying off the loan and the interest

With a collateral loan, the borrower can pay off its loan to reclaim his/her item before the due date or on the day the contract expires. Your pawnbroker may inform you once the contract time expires and offer you 14 days cooling off time to redeem your asset. Once you repay the full amount you owed and the interest due, you will get your asset back that has been stored in insured and secured vaults during the loan term.

  •   Failing to pay off (or paying late)

In instances, when you cannot redeem your asset kept as the pawn, even within the grace period, your pawnbroker may help you in renewing the loan. You will receive a new contract and an additional six to seven months to pay back, by paying off the interest of the original loan term.

Conversely, the pawnbroker may sell your item to recover the cash or debt if you do not contact or wish to redeem your item within the specified time.

Regardless of what one may believe, a professional and reliable pawnbroker always wants to help his/her valued customers wherever possible. Indeed, a pawnbroker works to make the pawnbroking process more accessible and comfortable for customers who are likely to come back to pawn the same (or other) asset should they want fast cash again in future. While you can secure a pawn loan from a pawnbroker without any credit checks, you can also recover the collateral after the existing loan term expires with no hassles.

5 Things to Consider before pawning any luxury item in a local pawn shop

local pawn shop

When tough times hit hard, people often look to pawn shops to acquire value from their luxury assets, securing a safety pawn loan that covers short-term financial needs. Not only does a pawn shop offers an excellent way of raising money off the things that you probably do not use or want, but a pawn shop is also a place where you can secure an instant cash loan without troublesome credit checks. While more and more people are now turning to pawnbrokers for procuring instant loans, high-end pawnshops are monitoring their security systems carefully to shield their inventory.

If you are considering visiting a pawn shop to unlock the value of your luxury item, here are five things that you should consider before accepting offers:

  • Track record

With the increasing popularity of some TV shows that focuses solely on pawn shops, more individuals are opting for the convenient pawnbroking service to pawn as well as sell their valuables. However, before you visit a local pawn shop, it may be worth considering two things:

One, how long the pawn shop has been in this business? And,

Second, how long they have been at their present location?

Look:

It is always important to choose a well-established business that has had a long track record and pleasant dealings with the community. Here at The Luxury Hut, we pride ourselves on our proficiency to provide our potential customers with elite service for many years.

  • Qualified team

When you choose to pawn or sell a luxury asset, it is essential to have an idea about the possible value of your item in the recent market before walking in the door of a pawn shop. Keep in mind:

Virtually all reputed and reliable pawn shops in London or any other big city have a qualified team of professionals who have extensive knowledge and experience to assess an accurate value of any luxury asset.

Want to know the best part?

With more than 40 years of experience, experts at The Luxury Hut are always on hand to provide you with their unsurpassed and expertise valuation service at no cost to you. Just call us on 0207 242 5411 to communicate with one of our team members and get expert advice on our fantastic pawnbroking or selling process without any obligation.

  • Legitimate business

When you decide to sell or pawn with The Luxury Hut, you may wonder:

‘Is The Luxury Hut properly licensed?’ or, ‘How The Luxury Hut is regarded among its trade organisations?’

Although there may be media speculation around pawnbrokers, often portrayed negatively in the press, the fact is that all pawnbrokers are now heavily regulated and required to acquire a license from the Financial Conduct Authority to trade. And, we at The Luxury Hut are also the members of the National Pawnbroking Association and strictly adhere to their guidelines.

  • Ways to value a luxury asset

You might be wondering:

‘How does the process of valuation work?’ or, ‘Does the appraisal process wholly describe your asset?’

Look:

If a pawnbroker does not carry out the process of valuation precisely and carefully considering all the significant aspects, you may not end up getting the actual value that you can potentially obtain.

The Luxury Hut executes elaborate valuation process, aided by our team of experts that includes a close assessment of every item on its merits and innate qualities as well as crucial aspects like the brand, age, and condition to provide our customers with the best offers possible in the market.

  • Security of items

As already mentioned above, a good pawn shop always monitors their security systems carefully for protecting their inventory. A pawnbroker is conscious of the fact that poor storage facility can hamper his/her business. While in his/her possession, if valuables are destroyed or stolen, customers will never want to engage in future and it may potentially run the business to the ground.

As with any trustworthy high street pawnbrokers, The Luxury Hut stores all precious assets safely in special holding vaults that are fully secured and insured.

Thus, get in touch with the experts at The Luxury Hut today and pawn your luxury asset with confidence and peace of mind. We are happy to help you wherever we can, making the process of selling and pawnbroking easy, secure and straightforward for you.

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