Pawnbrokers cash in on the recession (From Echo)

Pawnbrokers cash in on the recession

10:10am Thursday 13th August 2009

• Print
• Email
• Share
• Comments(4)

IT is an old saying that pawnbrokers do well when the economy takes a slide and, true to form, south Essex lenders are enjoying boom times in the current recession.

While independent pawnbrokers are seeing a big increase in customers looking for quick cash, chain stores, such as Cash Converters, are springing up in almost every town.

Del Gaisford, owner of Rennalls pawnbroker, in Clifftown Road, Southend, said he had seen a 30 per cent increase in customers since the recession took hold last autumn.

He said: “We take goods in exchange for cash no questions asked. With the credit crunch, people are falling behind with their bills and they need cash and they often need it quickly.”

Pawnbrokers and cash converters work on the same principle. A customer, in need of quick cash, hands over a possession for a lump sum of money. The item is then stored on the premises for the customer to buy back, plus interest, when they can.

While traditional lenders specialise in jewellery, chain stores such as Cash Convertors will accept electronic goods like TVs and sound systems.

Another reason for the recent success of pawnbrokers is the rising price of gold. Investors from around the world have been buying up the precious metal during the recession, as it is seen as a safe bet.

That means when a customer goes down to a pawnbroker today, they will find their gold watch is worth much more than it was two years ago.

Yesterday, England’s World Cup 1966 hat-trick hero Geoff Hurst opened a new branch of Mallard after the successful pawnbrokers and jewellers moved into bigger premises in Basildon town centre.

Richard Mallard, managing director, said: “We’ve only moved next door but it’s a bigger space and goes to show business is good at the moment. Obviously the people of Basildon like the services we offer and we can only say a big thank you to our loyal customers.”

• Print
• Email
• Share
• Comments(4)