It is not possible to specify the exact amount of money that will be needed for making initial loans. However, experience shows that between £50,000 and £100,000 of start-up capital needs to be available to lend to customers in the first year of a new pawnbroking business.
If you do not already have suitable premises from which to operate a pawnbroker's business (giving considerable attention to security) then you will find that shop fitting may cost up to £75,000 and if you intend to retail jewellery items too then you will need to spend on stock for the window (this amount will obviously depend on the size of the display). Jewellers' premises are ideal for pawnbroking and the businesses complement each other perfectly as the security is in place and most pawnbrokers find, for reasons previously stated, lending against gold, jewellery and watches works best.
Since the exact amount of capital needed in each case depends on many factors, you will almost certainly need to give considerable thought to preparing a detailed business plan and cash flow forecast with the help of your accountant and bank manager.
The choice of location and area, along with the level of existing competition and general demand for your services will affect the sums required.