U.S. pawn shops remained resilient throughout the recession and are becoming more mainstream, according to a new report from an independent market research firm.
The pawn industry was worth $14.5 billion in the United States last year, and the total number of U.S. pawn shops is more than 11,000 and growing, according to “U.S. Pawn Shops: An Industry Analysis.” The research firm Marketdata Enterprises released the report May 22.
Revenues in the U.S. pawn industry are forecast to grow 7.2 percent, to $15.57 billion, in 2012 and continue growing at a 6.3 percent average annual pace to $19.88 billion by 2016.
The pawn business is unique in that it is not dominated by large national chains, but consists of a large number of small, mom-and-pop run local stores, according to the study.
The surge in popularity of pawn shops is largely due to their ability to provide collateral loans for small amounts of money. Banks and other financial institutions are often not willing to provide these types of loans, especially in an era of tight credit. Also, collateral loans at pawn shops are processed quicker than most bank loans and do not impact a customer’s credit.
The average pawn loan in 2009 was $100 nationwide, up from $80 in 2008, according to the study.
Come see why collateral loans are becoming increasingly more popular. Visit our store on Washington Street today.
Suffolk Jewelers & Pawnbrokers is the oldest pawnshop in Massachusetts, and the largest store of its kind in New England.