Pawnbroking is a type of business where people borrow money by temporarily giving the pawnbroker something valuable, like jewelry, musical instruments, or electronics. The pawnbroker holds onto the item as collateral and lends money based on what it's worth. If the person pays back the loan plus interest within an agreed time (usually a few months), they get their item back. If they can't pay, the pawnbroker keeps the item and sells it in their shop to recover the money.

Pawnbroking has existed for thousands of years and serves people who need cash quickly but don't have access to traditional bank loans. The three golden spheres you might see hanging outside some shops are the traditional symbol of pawnbrokers, dating back centuries to European banking families.

A pawnshop or pawn shop is where this business happens. You might see all sorts of items for sale there: guitars that someone pawned and never reclaimed, old coins, power tools, or vintage watches. Each item has a story about someone who needed quick cash and used their possession as temporary security for a loan. While pawnbroking can help people in financial emergencies, the interest rates are typically much higher than those on bank loans.