As mankind's oldest financial institution, pawnbroking carries on a tradition with a rich history. Pawnbroking can be traced back at least 3,000 years to ancient China, and has been found in the earliest written histories of Greek and Roman civilizations.

During the Middle Ages, certain usury laws imposed by the Church prohibited the charging of interest on loans, thus limiting pawnbroking to people who had religious beliefs outside of the Church. Out of economic necessity, and because of problems in the banking system, pawnshops made a resurgence in later years.

The House of The Lombards operated pawnshops throughout Europe. They even counted royalty, such as King Edward III of England, among their clientele during the 14th century.

The symbol of the Lombards' operations were the three gold balls that still remain the trademark of pawnshops. Pawnbrokers make loans based purely on the intrinsic value of the security. Checking the customer's credit history is not necessary because only the value of the item being pawned is considered.



Today, statutory regulations of banking and finance are based on the legal foundation established by pawnbrokers. Many of the first leaders in the banking industry had roots in pawnbroking. As was the case
3,000 years ago, pawnshops continue to be a source of convenient credit for individuals in need of a short-term loan.

A typical transaction begins with a potential borrower coming into a pawnshop with the item he or she wants to pledge. The pawnbroker then determines how much to loan the patron for the item. Loans are paid out at a rate of about one-third to one-half of the price the broker can expect to receive for the sale of an item during the worst of times. This assures that a profit will be made. Pawning has long been a source of capital for people in times of need, as well as a means of financing business ventures.

If you cannot repay what you owe by the deadline (usually six to seven months) and the amount borrowed was £75 or less the item is forfeited.

If you have borrowed more than £75 then we have the right to sell the item; interest will continue to accrue until the item is sold. If the item sells for more than you owe under your agreement, including interest and sale costs you can claim the surplus.