pawnbroker

One who lends money on the security of goods held. The pawnbroker earns income from the interest charged on a loan. The borrower does not have to pay anything back until the end of the term, which is usually a maximum of six months. The amount that the pawnbroker lends is based on a percentage of the value of the goods. When the loan, plus interest, has been repaid, the goods are returned to the borrower. If it is not repaid the pawnbroker can sell the property to cover the debt. The traditional sign of the premises of a pawnbroker is three gold balls, the symbol used in front of the houses of the medieval Lombard merchants of Italy.