As the UK economy continues to fall deeper into recession and banks make access to credit even harder, many people are looking for alternative ways to get access to cash. Over the last year, pawnbrokers have benefited greatly from the credit crunch as more people look to take up their services and release cash from their valuables. So much so, that according to the National Pawn Broker association, the industry has growth by 10% this year alone, against a backdrop of increasing redundancies and companies going bust.

What do pawnbrokers do? In essence they lend money to individuals, usually on a short-term basis, using an individuals belongings as collateral. Popular items include, jewellery, watches and electrical items however the range is extensive and different brokers will except and value items differently, so it’s essential to shop around.

At one time pawnbrokers traded in some down markets areas in order to capture the business from the poorer echelons of society who were often in need of funds. Today, however, many brokers are trying to shed that image and have reinvented their business model by attracting more up market clientele and even using the internet for customers who prefer discretion.

This strategy has certainly been successful as reports by the National Pawn Broker Association suggest that even such a prestigious item as an Aston Martin has recently been traded through a brokerage. As evidence of the growth trend ;isted Pawn Broker Albemarle and Bond saw a 43% year on year increase in revenue.

However, if you are thinking about using a pawnbroker be aware that they usually charge a high interest rate and will not give you the full value for the item exchanged, to cover themselves against any potential losses. In addition, failure to repay the money means that you will forfeit the item and therefore it is vital to ensure that you have a sound plan in place to repay the money you owe.