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Las Vegans using pawn shops for loan needs

Oct 06, 2012 Quinn Thomas

Many individuals prefer to use pawn shops for their short term lending needs rather than other companies. This could be because they may not qualify for a traditional loan from a financial institution. Or maybe they're interested in the sector because the industry's popularity has skyrocketed recently with the success of numerous reality television shows like Hardcore Pawn and Pawn Stars. Las Vegas, Nevada, is home to many pawn shops. These businesses, like those in many other communities, have seen a rise in popularity recently. Many of the brokers in the city have become akin to personal bankers for many individuals. Las Vegans using pawn shops and lenders more often
According to Vegas Inc., because many citizens of Las Vegas are considered underbanked and don't use traditional financial institutions to store their cash, they are going to alternative lenders. These include short term lenders and pawn shops, both of which are common in the area. The source reported 33.2 percent of households in Las Vegas Valley don't use banks, citing a report from the Federal Deposit Insurance Corporation. The number of families that are considered "fully banked" by the study, those that use no alternative forms of lending, dropped from 71.3 percent in 2009 to 57.3 percent this year. The unbanked population stands at 6.2 percent this year in Los Vegas. Because the number of underbanked people is increasing, area brokers and lenders may want to consider ramping up their marketing strategies so citizens are aware of all of the options available to them. Alongside a new campaign, companies may want to make sure they increase hiring to ensure customers are always being helped, thereby increasing revenue. Pawning becoming easier
Many industry experts are not surprised consumers are heading to pawn shops for loans with increasing frequency. This is because the regulations revolving around the sector are making it easier for people to find the services, because new stores may be cropping up in the near future. According to KLAS-TV, new regulations are reducing the amount of paperwork needed to obtain a license by up to 75 percent and making the fees easier to contend with. "We have been processing business licenses in about 5 ½ days," Las Vegas Business Licensing Manager Karen Duddleston told the source. "If they plan on between two and five hundred dollars, they should be able to get through the licensing process."