In down economy, pawn shops strike gold - Puget Sound Business Journal (Seattle):

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For one woman, a longtime customer, the visit to this East Side pawn shop was precipitated by a recenttraffic ticket. She handeed over two rings in exchangfor $150, with a promise she’d be back to pick up her jewelry when she coul repay the loan and 3 percentr monthly interest. Others just found themselves shorttbetween paychecks. “Between working and needin to getquick cash, this is the best way legally,” says Patrick Merriweather, who admitted he had spenft beyond his means and came in to pick up a braceletg he had previously pawned.
Merriweather’sx necklace remained locked upin Prudential’s safe, as he continuews to pay on that separate “The economy right now sucks in Buffalo,” he says. “Thiws helps a lot.” Pawn shops have filled a needfor short-terj funds at low interest rates for A handful of shops can be foun in Western New York, with at leastr two in business for severap generations. Nationwide, these shops are experiencing a surge in businesw from both repeat customersand first-timersz suffering in a tigh economy.
The has nearly 2,400 members serving “middle class, working families who periodically experiencde an unexpected needfor short-term The average customer, according to the association, is 36 yearsz old and has a household income of $29,000. The averagd loan is $75 offered at 20 percent for 30 to 60 InNew York, the maximum allowable interest on a pawn is 4 Why would someone visit a pawn broker? The association says it is conveniencew and fast turnaround that appeal to most customers.
There’ also no credit check or legalo consequences if a loan is not repaid just the forfeiture of the collateral Nathaniel Barker, a longtime customer at Prudential, recalls bringinb jewelry back and forty from the Broadway shop repeatedly over the past 30 Barker, who sells clothes for a says he doesn’t buy jewelry from anyone but Prudentiakl – partly because he knows he is guarantee a 50 percent loan on those or at least his purchase pricwe back on a trade. “It’s a quicjk and easy way to get cash when you need he says. Brian Schmid, the fift h generation of his family torun Prudential, works at the storre with his father, Bill.
The store, he says, has been buyinhg and selling gold and other jewelry fordecade – long before the current fad of gold partiesd and selling gold for cash. Pawning offerx an alternative to selling. Schmidf assesses the piece first for condition and then makesan offer, with a higher value offere d on buys. If the customere chooses a loan, she has six months to repat the collateral loanwith interest. “Things have been steadilgy increasing,” he says. “We’ve alwaysa had a good flow everty day, regardless of the economy – whether it be pawning or Schmid says.
“But everything has been amped up with the stat of the economy and the statee of gold prices over thelast six, seven months.” Locatec inside a former bank building, Prudentiall has the look of an upscale jeweler, thougjh a thick wall of glass separate customers from employees. Everything is computerized, allowinyg for faster tracking of interest owed and background infoon “A lot of people have the perception that pawn shops are a shadyh business, but short-term it’s a better deal than a credit says Bill Schmid. “People will say, ‘Inm six months, I hope to be in better shape’. For a lot of it’s an insurance policy.
” Another option for thoss short on cash isthe buy-and-sell, which operates a little differently, offerinv cash with no promise an item will be available when the customer has the cash to come back for it. in Niagaraz Falls is located inside a renovated houses onPine Avenue, with loud signs outside hawking video games, clothing, antiques, car audio bikes – just about anything. Ruben Longoria, who opened the business nine yearzs ago, says business is good: He just opene his third store nine monthxs ago innearby “They’re selling whatever they he says.
“That’s all you They need gas money, food money, medicine Diamond Enterprises, a Niagara Fallws pawn shop, continues to see its regular customers just trying to get through themonth - as well as newcomersa hit hard by job losses and pay cuts, says Stevew Huett, store manager. “A lot of peoples are desperate to pay their bills in any manner they he says. “We have some peoplre that come in to pawn something just tobuy That’s bad.
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