Businesses ‘turning to pawnshops’ as banks close doors
Cash-strapped companies that have seen their line of credit cut off by their banks have been forced to go cap-in-hand to pawnbrokers to stay in business, according to R3, the trade body for insolvency professionals.
The companies are thought to be handing over office furniture, company vehicles, machine tools and other equipment as collateral for loans from pawnshops.
R3 said a recent survey of members provided anecdotal evidence that some firms were using the service.
