Pawn broking is an ancient practice that dates back to the Ancient Greeks and the Roman Empire. There is also evidence of pawn broking in the East more than 3000 years ago. During the Middle Ages pawn broking came under severe criticism, legal restrictions and was prohibited by many religious institutions. Despite the long and at times turbulent history of pawn broking, it has remained a common practice throughout the world.Pawn broking is the process by which secure loans are provided to individuals where items of personal property are used as collateral. The Pawn Broker lends money to at certain interest in exchange for personal property which is deposited as security. This personal property may come in numerous forms from items of jewellery to mobile devices and vehicles. If the loan is reimbursed within contractually agreed timeframe then the collateral may be repurchased at its original price plus interest. If the loan cannot be repaid on time, the collateral may be liquidated by the pawn broker through sales to customers. These agreements and exchanges take place at specialised stores known as pawn shops.
Pawn shops are the modern facilitators of this ancient form of transaction. Often open outside of conventional trading hours, many pawn shops offer their services throughout the night when individuals may be in need of an instant loan. Items of value are held as collateral in exchange for cash and the terms of the loan are agreed to with regard to an interest rate and appropriate time frame. Due to the failure of certain loan repayments, pawn shops offer an extensive range of items on sale from antiques to artwork and gold. This duality of purpose offers customers the opportunity to procure loans or purchase a variety of items.
Loan Merchant Bank is Johannesburg’s trusted pawn shop who buy and loan against an extensive range of personal property. Loan Merchant Bank provides the opportunity to leverage your assets to obtain instant cash loans. Contact Loan Merchant Bank today for more information on the exceptional services they offer.