The Business of Pawn Stores in SA – How they’ve had to innovate to survive.
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GUEST – Peter Forshaw - Chief Financial Officer for Cash Converters Southern Africa.
In South Africa, pawning goods as a way to secure loans can be traced back to colonial times. Pawn shops that offered loans against jewellery, watches, tools and other comparatively small personal items of value existed in colonial Cape Town, and in other smaller cities and towns.
In modern times, pawnbroking has evolved from just lending against smaller physical assets such as gold and jewellery to accepting increasingly specialised forms of security. These days there are lenders that will accept business invoices that are awaiting payment, commercial property and high-value assets such as luxury vehicles as collateral on a loan.
In South Africa, pawning goods as a way to secure loans can be traced back to colonial times. Pawn shops that offered loans against jewellery, watches, tools and other comparatively small personal items of value existed in colonial Cape Town, and in other smaller cities and towns.
In modern times, pawnbroking has evolved from just lending against smaller physical assets such as gold and jewellery to accepting increasingly specialised forms of security. These days there are lenders that will accept business invoices that are awaiting payment, commercial property and high-value assets such as luxury vehicles as collateral on a loan.
