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.
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