The more the recession continues to damage the economy, the more we will continue to see shops close. However, specific industries are booming and growing into one of the most promising industries.
Since last year, the National Pawnbrokers Association reported that as more and more middle and upper class people turned to pawnshops to exchange their personal assets, the growth rate of pawnshops in Britain was estimated to be 8%.
Over the years, it has evolved from a simple corner project to a complex senior contract between borrowers and creditors. Pawnshop services vary from pawnshop to pawnshop. Some people accept wine collections or high-quality aged cheeses as collateral.
There are two types of pawnshops in Britain.
Brick and plaster – traditional way of doing business. Borrowers go to pawnshops to assess their valuables. The transaction is conducted under the condition that both parties reach an agreement on a specific contract. The advantage of doing business with an entity pawnshop is that the borrower can establish a mutually beneficial relationship with the borrower. If the borrower has a reliable repayment record and the landlord is regarded as a regular customer, it is easy for him to postpone the maturity date or obtain a lower interest rate. The borrower can obtain more customers through the borrower’s recommendation. In the long run, it can also build reputation and increase customers. The disadvantage of doing this kind of business is that it can neither be easily expanded nor immediately contacted with other customers. Customers must go to the store to pledge goods in person.
With the development of online technology, pawnbroking can now be completed through online transactions. Borrowers no longer need to go directly to the store to assess their valuables. Through online transactions, you can complete the evaluation, delivery and currency exchange of collateral with a click of the mouse. All this is to make customers simple and fast. It also provides a broader market, as others can more easily try to borrow money from pawnshops. The disadvantage of doing this business is not beyond professional services.
The service may be difficult, but due to strict compliance with some policies and rules, customers may be a little suffocated and angry. Another worrying reason is that important information such as address and name is being sent on the network, so it is vulnerable to hackers and other network experts.
