Pawnbroking Vs Payday Lenders

Pawnbroking Vs Payday Lenders


Its no wonder that with all the news recently  regarding Payday lenders and loan sharks that more people are looking to pawnbrokers as a means to temporary borrowing money!

Now all forms of lending have their use if it’s the right lending vehicle for you and used for the purpose intended,….AND the repayments are managed well!.

Whether it is a mortgage for a house purchase, a loan for a car or a loan for that well deserved holiday, even short term loans have their use, they can cover for those unexpected events like new tyres for the car or the kids want to go on the school camp or trip. (I mean life happens doesn’t it) and were not always financially prepared.

It’s a fact people borrow for all sorts of different reasons and that’s their choice, but what I want to do is to show you that not only does Pawnbroking have a place for borrowing in the 21st Century,  But I also want to tell you why Pawnbrokers are a friendlier lender than a payday lender.


Firstly, a difference between a pawnbroker and payday lender is that a pawnbroker doesn’t charge any application or etablishment fees nor do they charge interest.

Secondly, unlike payday lenders, pawnbrokers don’t charge late payment fees, collection costs and they won’t refer you to a debt collection agency if you fall behind on your payments……. Guess what?

It gets even better you don’t have to pay a Pawnbroker Loan back if you don’t want to …..YES you heard that right you don’t have to pay  us back and we will even do business with you again how’s that for friendly!

Can you imagine a Payday lender saying! “Hey it’s OK you don’t have to pay us back if you don’t want to” I don’t think so do you?


A pawnbroker loan is actually called a “Pledge” and works like this, the Pawnbroker needs an asset to loan against, its simple when you pass the pawnbroker an item, he will then pass money back to you as a pledge, when you return to collect the item and repay the pledge  plus redemption fee (safe keeping fee) the pawnbroker will then return your item to you “Easy Peazy”

You can redeem your item at any time and only pay for the time that it has been with the pawnbroker…simple!

And because there are No application forms, No credit checks and No awkward questions a pawnbroker can offer you speed and convenience.



Well simply put an asset is something that has a value, for example some of the pledges (pawn loans) we are seeing today are on assets such as “Designer Handbags” “Classic & Prestige Cars” “Luxury Watches”   but a Pawnbroker will look at anything that they think has a value that they can lend on.

If you walked into a Payday lender or Finance Company and asked for a loan against your Jewellery, handbag or watch or some other asset of value, I can guarantee they would say “I’m sorry” but we can’t accept that as security, BUT a PAWNBROKER will!

Is that friendly?


Our customers come from all walks of life and borrow for all sorts of reasons. The main drivers for a customer using a pawnbroker are speed and convenience, some customers are borrowing to satisfy a short term cash flow need and we know that all sections of society tend to be affected by cash flow problems at various times of the month or year.

Pawn broking today offers a Modern, Friendly Convenient way of getting the cash you need for whatever purpose, with speed, convenience and confidentiality.


So’ which is friendlier? The Payday Lender or the Pawnbroker?

We will let you decide, but next time you or a friend or business acquaintance is looking for a temporary loan remember don’t rule out a Pawnbroker

Wanting more info?

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