Entrepreneurs turn to pawnbrokers as banks tighten business lending

"We've seen a noticeable increase in shopkeepers and builders using our services due to the lack of funding from other sources," Gillespie said.

"The banks are more reluctant to lend than they used to be. They won't lend you money against your watch and often require personal guarantees or charges on your house," Gillespie explained.

The average item pledged to H&T is valued at around £200, with loans typically being less than that amount. However, there has been a noticeable increase in larger loans.

A significant portion of H&T's customers come from ethnic minorities, particularly the Asian community and Eastern Europeans, who are more familiar with pawnbroking as a mainstream financial practice.

Read at Business Matters