The quick way out

A pawnbroker will lend from as little as £5 to many thousands of pounds in one quick transaction that requires no credit checks or lengthy meetings or form-filling. Short-term cash flow is the reason most people use a pawnbroker, where convenience and speed of service are quite unrivalled. A loan will just as often be obtained for some extra spending money as it will be to clear an outstanding telephone bill. It is flexible, transparent, competitively priced and immediate and it is these factors and its payment terms, which are without early redemption penalties that customers prefer.

Pawnbrokers target a customer base which is precluded from accessing more traditional forms of finance, including mainstream banking and alternative lenders. As a result of the credit crunch environment pawnbroking is now being used by a greater proportion of the population and it is estimated the industry will double over the next 10 years. All major high street pawnbrokers and smaller local companies have reported a significant rise in profits since the beginning of the recession, as more and more people are finding alternative routes to get cash, meaning these figures will change considerably over the next few years.

Paul Aitken is founder and chief executive of Borro.com.