Pawnbroker Report Trends & Steady Industry Growth Original Article At: nationalpawnbrokers.org
The National Pawnbrokers Association (NPA) today announced the results of the NPA 2015 Trend Survey that assesses how changes in the U.S. economy have affected the pawn industry since the beginning of 2014. Findings of the survey demonstrate conservative growth within the industry over the past year, as well as a dip in the number gold-based loans and gold-buying transactions. This decrease in gold-based transactions, according to industry experts, is due to consumers having released disposable gold during peak gold price periods.
While gold-based transactions may have leveled off, the majority of pawnbrokers surveyed reported a three to five percent increase in overall business. Collateral loans, also known as pawn loans, remain the core of pawnbrokers’ businesses, with over 80 percent of pawnbrokers reporting that pawn loans are the most common transactions. According to the survey, the national average pawn loan amount remained at $150.
“Americans continue to turn to pawn stores for non-recourse, collateral based loans,” said Ben Levinson, president of the National Pawnbrokers Association. “While business has grown more conservatively in recent years, increased public awareness, a positive image, and consumer-friendly stores attract new customers to pawn stores every day. “
The Trend Survey indicated that over 85 percent of all pawn loans are repaid, which is consistent with the national average in 2013. “Pawn store customers tend to borrow only what they need, as indicated by the low average national loan amount,” Levinson added.
Pawnbrokers surveyed predict steady, continued growth during the 2015 fiscal year. They also anticipate that the number of pawn loans will increase in the upcoming year, but they are doubtful that the retail side will experience as much growth.