It is an unprecedented time in the world. Governments are being overthrown left and right, Europe’s economy is struggling like never before, and the Chinese have the most money. A once completely communist country, China seems to be in the midst of what America went through during the industrial revolution. They seem to produce everything we buy. America, once the biggest manufacturer of goods in the world, is now the biggest consumer of Chinese products. From chairs to clothes to electronics, everything is “made in China”.
While China seems to be in the best years of its rich history, some companies would not say that. Banks in China aren’t stupid. They see what happened in America and the know it can happen to them too. With all the production and building, there are hundreds of thousands of small and mid-sized companies looking for loans.
As more and more small companies are getting loans, the banks are becoming stricter. They have really slowed down and are lending less. Because of this many small and mid-sized companies are turning to a local pawn shop to get loans. These companies are offering up automobiles and even real-estate like office building or factories as collateral for loans. The pawn business in China is booming.
I work in a local pawn shop in Boca Raton, Florida and I don’t think I will ever have business coming to me for a loan. Cars and real-estate, while rare, do get pawned; but usually by individuals. And to tell you the truth, if businesses were turning to a local pawn shop for a collateral loan I would not feel great about the state of America.
But in China, because there are so many people, it makes sense that small businesses would turn to pawn shops for loans. They’re quick, easy, and usually cash deals. It’s nice to see a local pawn shop being able to contribute to a countries economy.
by, Seth at Boca Raton Pawn