Are Pawn Shops the Recession Proof Business?
stressful activity. We may know that “a pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral.” “If an item is pawned for a loan, within a certain contractual period of time the customer may purchase it back for the amount of the loan plus some agreed-upon amount for interest.” “The amount of time, and rate of interest, is governed by law or by the pawnbroker’s policies.” “If the loan is not paid within the time period, the pawned item will be offered for sale by the pawnbroker.” (Unknown Author, Pawnshops, Retrieved from www.wikipedia.org). We are also aware that the price received by the customer does not truly reflect what the object may be worth because even as the pawnshop makes money on the interest charged when the loan is paid back, they will also make a profit on selling that item by “lowballing” its actual worth. We understand that this profit may not be real for the pawnbroker because of the enormous a
