BGN Entrepreneur

Pawnbroking has a very long history, which can be traced back to ancient China. It refers to a business entity that offers monetary loans in exchange for an item of value, such as jewelry.
Customers could come back later to claim the items they have pawned. Generally speaking, most pawn shops make their money on the interest charged, rather than acquiring goods cheaply and reselling them at higher price. Although in the longer term, the interest rate of borrowing money from a pawnbroker is expensive, in the time of urgent needs for money, pawn shops can be much more helpful than banks or other financial institutions.
The business began as a fragmented trade tucked away on backstreets. It became extremely thriving in the late 1800s due to the impact of war. There were almost as many pawnbrokers in the UK as pubs. However, after World War II, the number dwindled as the world comes into a time of high job security and the advent of the welfare state.
These days, due to the recent credit crunch and economic downturn, the business is thriving again in many big cities, in order to meet people’s needs. For example, there are increasing amount of pawn shops in New York City now. Some of them can even doing their business via post and electronic transfer. They are exclusive New York City pawn shop, which are completely online businesse.

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