Reframing Pawnbroking 3: A Case Study

Reframing Pawnbroking 3: A Case Study

Recently, I’ve been on a personal crusade to reframe the Pawnbroking industry. I’m tired of the inaccurate stereotypes that Pawnbroking is a seedy, dishonest business that does a disservice to its clients. Nothing could be further from the truth, and it’s just a few rotten kiwifruits spoiling the fruit bowl as far as I am concerned. Pawnbroking has seen a resurgence in recent times with key figures in the finance sector identifying the potential of collateral loans. Ultimately, one-dimensional lending doesn’t make for a stable financial landscape and banks must adopt a more pawnbroker-like model.

So with that in mind, in this blog, I am going to present to you a simple case study.

Client: 45-year-old male,


A property developer, we’ll call him Ted, had a successful property development portfolio. He knew his business and ran it well. Ted had purchased a single house on a prime spot intending to remove the eighty-year-old ramshackle house, subdivide the section and build two new properties. He’d done this numerous times already and was confident in the work he’d done to complete the project. Ted ran his business close to his margins at times because he saw risk as a natural part of the game.

The development was nearing completion, and all was on track and going well until Ted’s bank called in his loan. He immediately addressed the issue as best he could but had a shortfall of $38,000, and no funds to pay. As he ran his business close to the touchline, he couldn’t borrow more. He was concerned, and his bank wasn’t playing ball, and then talk of repossession started. Things were getting dire and the properties needed to be sold before they were completed.

And then somebody recommended The Pawnbroker because of our collateral loans and he gave me a call. He came down to see me in my office, and I let him know we lend on all sorts of assets whether they be luxury watches, diamonds, gold, art, heirlooms, technology and cars. His eyes lit up when I said cars.

“Would you consider a Mercedes?” he asked.

“A Merc? Absolutely,” I responded.

In the end, by pawning his beloved Mercedes with The Pawnbroker, we managed to halt the repossession order. He used the funds to market the properties using the $40k. After the sales went through, he returned, repaid the loan and drove off in his Merc with a smile on his face. He’d beat the banks.

These are the kinds of stories we hear about all the time at The Pawnbroker. People have assets, they need cash, and we make it happen. It’s that simple.

And lastly, before I sign off, an opportunity. Are you’re tired of slogging it out working for “the man?”Have you ever considered running your own business? Then check this out. Get in touch if this sounds like you.

Take care out there.



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