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ABOUT US THE PAWN INDUSTRY PAWNBROKING BACKGROUND  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. In 1462 the Franciscans set up the montes pietatis, which granted interest-free loans to the poor, though they were later forced to charge interest to prevent premature exhaustion of their funds. Public pawnshops existed briefly in the Middle-Ages but were re-established in the 18th century to free debtors from the high interest rates of private pawnshops. Pawnbrokers, also known as collateral loan brokers, make loans based purely on the intrinsic value of the collateral. Pawning has long been a source of capital for people in times of need, as well as a means of financing business ventures. Today, statutory regulations of banking and finance are based on the legal foundation established by leaders in the banking industry had roots in pawn broking. 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. |
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