In today’s article, we would be explaining how the pawn broking business model is like using ValueMax as a case study.

ValueMax Group established their first pawn broking outlet in 1988, providing pawn broking services and the retail and trading of pre-owned jewelry and gold. Furthermore, they have an overseas presence – namely Malaysia. When first IPO-ed, the Group only had two business segments – Pawnbroking and Retail & Trading of Pre-Owned Jewelry and Gold. However, they have expanded to include a new business segments – Money Lending.

Pawn Broking & Trading of Pre-Owned Jewelry & Gold

The main business of the Group is pawn broking services. Pawn broking is a regulated and licensed form of collateralised micro financing. Pawners will pledge articles as collaterals for the loans extended. Typical pledges include jewelry, branded timepieces, gold, platinum and silver.

The retail arm of the group reconditions selected unredeemed pledged articles ...