AS the credit crunch continues to take its toll, one set of traders in the Capital has seen business boom – and from an unexpected source.
Pawnbrokers, traditionally used by the less well-off, are reporting a huge rise in the number of more affluent and professional-type customers eager to make some quick cash.
One of the Capital's main pawnbrokers said it has seen custom increase by more than ten per cent in the last six months as a new breed of client looks to get their hands on a quick-fix loan, sometimes to help pay off bills.
And the National Pawnbroker Association (NPA) said growth is being seen across the industry.
Harvey & Thompson Pawnbrokers, based on Lauriston Place, said it has recently seen many more middle-class businessmen added to the more traditional cash-strapped short-term clients.
Joan Bissett, manager of H&T Edinburgh, said: "A lot of our customers don't have banks so they look to use gold to give them a short-term boost. But as well as our traditional customers, we have seen more middle-class professionals using jewellery to help them out for a short time. I think people are finding times hard."
Although the branch, part of the UK's largest pawnbroker chain, also offers to buy goods from clients, its main business is in issuing loans in return for storage of items, usually jewellery.
The majority of its loans are for items with the value of £200-£300, although in the last six months it has issued individual loans of more than £1000.
Andrew Roberts, trainee assistant manager at H&T Edinburgh, said: "It is a very easy way of getting a short-term loan, whether it is to help someone buy a car or pay a bill."
An increase in sales of between ten and 15 per cent has also been seen at Cash Generator's three Edinburgh stores, in Great Junction Street, Dalry Road and South Bridge.
Frank Brown, manager of the Edinburgh stores at the company, which buys, sells and exchanges goods, said: "People are looking to buy second-hand that wouldn't have before."
The NPA, which represents around 35 members in Scotland, said that sales growth is being seen across the industry.
Des Milligan, chief executive of the NPA, said: "It is fair to say that the majority of people (using pawnbrokers] are relatively poor: they are on low wages and are borrowing a relatively small amount.
"But there is a small but growing sector of people at the other end of the social spectrum. Often they can be people who own their own business, who need to pay tax twice a year but struggle, especially if it falls at the same time as other bills or school fees."
•
www.thenpa.com•
www.harveyandthompson.com The full article contains 475 words and appears in Edinburgh Evening News newspaper.
