The History of Pawnbroking

Pawnbroking is the most established lending solution available today. With reputable pawnbrokers across the world, it’s become one of the most trusted ways of borrowing money. Some of history’s most important events have been funded by pawnbrokers, and the roots of pawnbroking can be traced back to the ancient world.

Ancient China

Ancient Buddhist monasteries in China were the first to lend small sums of money to citizens who, despite being rich in land or cattle, were cash poor. Later, the wealthy would partner with monasteries to open pawnshops in rural areas in a bid to bring cash to China’s remote reaches.

Ancient Greece

Pawnbroking was used by many in ancient Greece. In Athens, local traders would travel between different areas selling goods. In order to meet the demand for a certain item (wool, for example), they would use other goods as collateral and take out a loan to buy the popular item. Amongst members of the community, one of the most popular items pawned was clothing. People would use their fine clothes to get a short-term loan, which they would pay back before they needed to wear the outfit again.

Italy

Have you ever wondered where the iconic sign for pawnbroking came from? Today’s pawnbrokers can be traced back to the noble Medici family from 15^th Century Italy. Their coat of arms, featuring 6 circles, was split in half when half the family became pawnbrokers. Allegedly, this became the three golden balls in today’s pawnbroking symbol.

Britain

Pawnbroking’s popularity surged during the 19^th and 20^th Century after the Pawnbrokers Act was passed in 1872. This certification meant that pawnbrokers could be properly regulated, which prevented high interest rates or the sale of stolen goods. Anything from jewellery and silverware to clothes and bed linen could be pawned for small loans, and with nearly as many pawn shops in Britain as there were public houses, this method of lending was clearly here to stay.

In modern history, pawnbroking had a certain stigma attached to it. However, these misconceptions have dissolved as we’ve reached the 21^st century, and over the last few decades pawnbroking has become a preferred method of lending for many. For an individual, pawnbroking can help them pay an unexpected bill or make renovations on their home. Businesses also find pawnbrokers useful – they can take out a small loan to purchase more stock and use the profits to pay it back. 

Would you like to find out more about how pawnbroking works? Feel free to browse our website or get in touch with us here at Cuttings Pawnbrokers.