News & Resources

Short term lenders getting new clientele

Oct 09, 2012 Quinn Thomas

Many people in the past have frequented pawn shops when they want to sell items, but they are rapidly growing as one of the most popular sources of short term lending. Regardless of income, there will be times when Americans run into financial difficulty, and being able to leverage personal items at a pawn shop in exchange for immediate cash has proved immensely helpful for some citizens. As the amount being sought by customers grows, so does the price of the items being used as collateral. Fox Business reported on a company called Monster Pawn in Bloomington, Illinois, that has started to receive iPads, expensive jewelry and even cars in exchange for short term lending agreements. "People in business suits have been coming in for the past three years," owner Kathy Pierce told the news source. "They're underemployed, and they need safety-net loans to get through the week or month." Leveraging high price items has been a rising trend in the industry as more Americans fall on hard times. Furthermore, they view pawn shops in a positive light - instead of delaying payment on a bill or defaulting on a loan, customers are able to turn to these lenders often regardless of how much they need, Fox Business reported.