creditcrunchnews

You really know the credit crunch has hit when business owners, unable to secure funding through conventional means like banks, turn to paw brokers but that is exactly what is happening.

According to the pawnbrokers themselves, their clientele has changed a lot over the last months. No longer poor or even middle class, wealthier people who are still unable to access finance through conventional methods, due to impossible standards imposed by banks, are flocking to them in droves.

Their stores show it too. Once the preserve of the slightly dingy, noticeably second hand, they are now stuffed with high end electronics, quality jewelry and other expensive items.

A New Kind of Loan Security

This seems to be a move of desperation on the part of businesses with cash flow problems, or those needing to buy materials to complete projects.

And the pawn brokers are definitely laughing all the way to the bank. They’ve reported that their businesses are booming and with many of their new clients defaulting, they have no shortage of quality stock, that is attracting new buyers who are looking for bargains.

Online Innovation

One pawnbroker in particular is making money hand over fist. Paul Aitken pioneered online pawn broking service Borro, that offers a discreet, online pawn option for people needing cash fast but unable to obtain it through traditional avenues.

His business has doubled every month since September, having only started in June! The type of items pawned include luxury cars like Aston Martins and Ferraris, give you an idea of who his client base is - the very well heeled!

Wealthy Individuals are Also Turning to Pawnbrokers

Overextended wealthy private individuals are also turning to pawnbrokers for their short term cash needs. In fact, Aitken himself stated that many of his clients are families looking for money to pay public school fees.

Good News for Joe Public

Aside from the pawnbrokers, there is another winner in this whole debacle. The ordinary man on the street now has a much cheaper option when looking for luxury goods.

So if you are looking for a special gift or to upgrade your home theatre system, TV or computer, it may be worth your while to stop in at your local pawnbroker first. You may just find a great bargain! Then again, if you’re in the market for a slightly used Ferrari, you can always have a look on the Borro website…

While this report is disturbing and does certainly make one feel a little uneasy, considering that the people concerned are supposed, in our minds at least to be immune to economic upheaval, it does just prove that the credit crunch brings out all kinds of ingenuity.

It’s just another example of people from all walks of life doing what needs to be done to get by and with a little ingenuity and a lot of self control, it is possible for most of us to ride out the Credit Crunch.