A Brief History of High End Pawnshops

The pawnbroking industry that we know today has a long and highly acclaimed history of helping people in financially distressing instances. Although the business model of a typical pawn shop was once misunderstood, today, high-end pawnshops or luxury pawnshops flourished as a significant alternative to other conventional ways of borrowing cash. Indeed, a pawn shop is a convenient and legitimate place to obtain credit loan right away using anything valuable as collateral.

While more and more people are turning to luxury pawn shops to raise instant cash for a short period, trustworthy Hatton Garden pawnbrokers or pawnbrokers Hatton Garden are working to make the process of securing pawn loans more convenient and straightforward. However, the origin of this oldest profession of the world can be traced back to over 3,000years ago when pawn shops turned up first. 

A Brief Account of its Past

According to Chinese records, the practice of procuring loans on belongings dates back to the beginning of the Western Han Dynasty, 206 BC. Chinese pawn shops are known to be significantly more softhearted compared to their contemporary Western counterparts. Borrowers could pay off their loans, taking up to three years and at a considerable three-per cent rate of interest. 

Meantime, while pawnbroking started to flourish in Europe during the Middle Ages, the practice was introduced by Norman Conquest to England.  In northern Italy, the Lombardy region was another seedbed of pawnbroking. Gradually, the term ‘Lombard’ became synonymous with the term ‘pawn shop’, and pawnbroking was popularly known as ‘Lombard Banking’. 

However, the practice of pawnbroking was not entirely smooth throughout Europe. By the 17th century, pawnbrokers had earned a prejudiced reputation as shops for stolen goods. But its image has significantly changed over the past twenty years or so. 

How Do Pawnbrokers Work Today?

The entire process of a typical pawn loan transaction is pretty simple and straightforward. A pawnbroker lends money based on the value the luxury item a customer leave as collateral. A customer brings in an asset and uses it as collateral to secure a cash loan for a relatively short time. The maximum loan tenure is typically for a period of six to seven months. 

When you hand over your collateral to a pawnbroker, he/she will assess it and determine the cash loan amount based on the current value and other essential factors. Unlike a bank or any conventional lending institutions, pawnbrokers neither check the credit score of a customer nor any different facets such as income before approving a loan. 

Hatton Garden pawnbrokers at The Luxury Hut provide entirely transparent, secure and straightforward service, making the pawnbroking process a significant alternative to any other way of borrowing money. If you accept to go ahead with the transaction, The Luxury Hut pawnbrokers Hatton Garden will provide you with a credit agreement to sign that outlines the amount you have borrowed along with your repayments. 

However, customers are entitled to retrieve their asset at any time within the loan period or after the contract expires, paying off the original loan amount and the interest due. Trustworthy pawnbrokers in Hatton Garden or anywhere in the UK usually offer 14days cooling off time to draw out the agreement. However, if a customer fails to retrieve his/her collateral within the time above, Hatton Garden pawnbrokers at The Luxury Hut can help you to renew the loan. Otherwise, they may sell your item for recovering the debt or cash. 

The Luxury Hut pawnbrokers in Hatton Garden always work to make the pawnbroking process easier and more comfortable for its valued customers. Thus, customers who are looking to obtain a pawnbroking loan can call on 0207 242 5411 and arrange an appointment to visit our Hatton Garden office in London with your asset.

Pawnbroking Today: A Safer & More Viable Option to Get Instant Access to your Asset

The world of pawnbroking has changed significantly over the years. Today, pawn loans are recognised as a more secure and viable option of borrowing than it was ever before. While pawn shops turned up over 3,000years ago, pawnbrokers had gained itself a prejudiced reputation in the past. For decades, the industry has been negatively portrayed in media, considering it as an unfavourable and expensive way to borrow money. However, its image has significantly altered over the last twenty years or so. 

Indeed, today more and more people are turning to high street pawnbrokers London or ‘pawnbrokers near me’ to avail of short-term loans or sell luxury assets and raise instant cash. Consequently, trustworthy pawnbrokers in London or any other big city are working to make the process of pawnbroking simpler, more straightforward and convenient. 

Unlike any other loan types, it is more comfortable and more secure to take out a pawn loan from high street ‘pawn shops London’. 

Three Basic Things You Need to Apply for a Pawn Loan

While there may be many ways to turn up some quick cash, a pawnbroking loan is ideally the best option to raise some money immediately with affecting one’s credit score. With a pawn loan, you can get instant access to money in exchange for anything precious such as a diamond ring or a Rolex watch pawned with your pawnbrokers London. 

For those who are looking to apply for a pawn loan, here are three basic things that you would need to get your loan approved:

The Legal Owner of the Item

A pawn loan cannot be typically applied on behalf of anyone else. If you are the legal owner of the asset you are looking to borrow against, make sure that you are present during the application process.

Proof of Identification

Although a pawnbroker typically lends money based on the actual value of the asset you leave as collateral, customers are only asked to provide proof of Identification to go ahead with the transaction. This standard procedure helps high street pawnbrokers in London or anywhere in the UK to protect them as well as their customers from fraud or financial crime.

A precious asset to pawn

If you want to take out a pawn loan, you have to bring anything valuable to keep as collateral. Although the items accepted as collateral usually vary from one pawnbroker to another, some assets such as luxury watches, diamond and gold jewellery are more commonly pawned and also, universally accepted. However, you can pawn more one item at once with trustworthy pawnbrokers London or ‘pawnbrokers near me’. 

How does pawnbroking work?

When you visit a pawnshop in London to take out a loan, the pawnbroker will inspect your asset precisely and determine its actual value based on its condition, current market price and other relevant factors. He/she will provide you with a cash loan offer right away for a particular term and of course, without carrying out any credit checks. The maximum tenure of pawnbroking loans is usually six to seven months. 

If you accept your loan offer, your pawnbroker will give you a credit agreement to sign that outlines the amount you have borrowed and what the repayments are. Once you sign it, you will receive a pledge receipt as a part of the deal. Here is the best part:

You are entitled to retrieve your collateral at any time within your loan term or after the term expires by paying off your original loan amount and the interest due. However, during your loan term, your asset will be stored in specialised holding vaults that are entirely insured and safe. 

Trustworthy pawnbrokers London usually offer 14days cooling off time to come in after your contract expires and draw out the agreement, paying off the interest for the loan period and retrieving your asset. If you fail to redeem your asset within the time mentioned above, your pawnbroker will either choose to sell your collateral to recover the cash or, may help you in renewing your loan.

You can acquire a new contract and an additional seven months to pay back, by repaying the interest of your original loan term. 

Make the most out of your assets

If you are looking to raise fast cash but have a poor credit history, simply get in touch with your trustworthy local pawnbroker today. Unlike banks or other traditional lending institutions, high street pawnbrokers in Hatton Garden or pawnbrokers London do not depend on their customers’ credit score to approve a loan. 

Your pawnbroker will examine your collateral and offer you a loan based on the item’s actual value. Moreover, you can pawn the same item again and again. But, while the value of some assets especially of precious metals like gold often fluctuates over time, you may not be offered the same credit loan amount every time you pawn it with pawnbrokers in London or anywhere in the UK.