Decoding the 'Pawnshop': A Business Thriving Against Economic Trends

'Pawnshop businesses act like lubricant for the economic system, aiding liquidity. The demand for short-term liquidity in the economy remains, and as the economy expands, the need for liquidity increases. This presents an opportunity for pawnshop businesses, which in the future will need to compete on the quality of service rather than just price. Providing diverse services, offering choices to customers, and maintaining high safety standards for asset storage will be key.'

         Mr. Sitthiwit Tangthanakiet, Managing Director of Tangthanasin Co., Ltd. The provider of Easy Money Pawnshop, one of Thailand's largest private pawnshops, reflects the overall economic situation in Thailand, where the majority of the grassroots population still requires short-term liquidity, particularly relying on 'pawnshops'. This business has been thriving despite economic conditions and reflects economic indicators to some extent. From interactions with customers, it is evident that during economic booms, business operators seek liquidity for investment or expansion, as seen in the decreasing number of assets forfeited from pawn loans. Last year, the rate of forfeited assets dropped to just 4.9%, down approximately 0.01% from the previous year's 5%. By the end of 2020, growth is expected to be around 20%.

       Currently, Thailand has over 800 pawnshop operators in both the private and public sectors, with Easy Money Pawnshop being one of the top private operators recognized by customers in the modern service era. Starting with its first branch in 'Rangsit', Pathum Thani in April 2005, Easy Money has now been in operation for 15 years, with a total of 50 branches and 2 Easy Money Shop stores selling second-hand goods across 28 provinces nationwide.

With a focus on service, spacious locations, and staff who accurately assess asset values, Easy Money also utilizes technology, such as fingerprint scanning for ticket issuance and private VIP rooms for customers pawning multiple items. Additionally, there is a 'Secure Room' for safe asset storage, catering to over 3 million customers and a circulation of more than 57 billion baht.

Recently, Easy Money Pawnshop has transformed into an alternative lending institution for Thai people, aiming to support SMEs and startups, and serve as a funding source for the public. Our target group consists of individuals with great ideas who see golden investment opportunities but may lack credit with financial institutions. Applying for loans can take time, but at Easy Money, you can simply bring valuable assets you have accumulated, and you can quickly obtain funds to grow your business. Easy Money meets this need and serves as an option for entrepreneurs, whether small or large, looking for liquidity, new investment opportunities, or solutions for emergencies.

Currently, Easy Money Pawnshop serves two customer groups, with over 75% being salaried individuals seeking pawn loans of 20,000 baht, and 25% being SME and startup operators needing around 100,000 baht each.

Most customers are individuals with assets accumulated over time, converting these assets into liquidity for temporary expenses without complicated procedures. Meanwhile, SME and startup operators use pawning as a bridging loan or short-term working capital to maintain liquidity for increasing stock or investment during periods when income and expenses do not align.

Assets pawned are primarily 70-80% gold, followed by jewelry, watches, branded goods, and IT products. We offer the highest prices possible based on asset conditions, averaging 80% of the asset value, with interest rates capped by law at 1.25% and a pawn contract duration of 5 months.