Pawnbrokers:
Within most towns, you can find usurer shops that deal solely in local loans of small amounts. These pawnbrokers take personal items as security for the
loans, usually at high interest rates 0f 15% or higher. Most of these loans range from a few shillings up to a hundred pounds. The usual duration for
these loans is usually for a month and can be extended a month at a time up to six months or more. If the loan defaults, even by a day, the goods
securing the loan are forfeited and available for resale by the usurer.
Moneylender:
At least one usurer in each major town operates as a moneylender, as opposed to being a pawnbroker. These individuals usually make large unsecured loans
to mercantylers involved in regional or long distance trade. The basic loans issued are the straight loan for those conducting commerce by caravan and
the sea loan for those conducting trade on the high seas. Since money is always in short supply, the moneylender also issues promissory notes instead of
money, see the Usurery link above. To insure there are sufficient funds on hand, some moneylenders allow non-mercantylers to deposit funds in their
money chest in return for a small percentage, 4% to 6%, compounded annually. Transactions such as these are fairly new to most of Northwestern Lýthia
and will only be encountered in large commercial centers.
Moneychangers:
Few usurers are strictly moneychangers, unless they are located in a very busy port frequented by many foreign ships and merchants, something Hârnic
ports have nothing to worry about as of yet. Instead, many moneychangers are also moneylenders. The moneychanger is highly involved in buying and
selling foreign coinage. The discounts charged average 10-20%. For example, 100d Aleathian might be exchanged for 80-90d in Tashal. There is
considerable distortion with Rethemi coins (notoriously debased) and they may be discounted as much as 50% in other areas. Golothan usurers, on the
other hand, pay high prices (up to 120% in Rethemi pence) for foreign coins, coveting them as security and to invest with those who are reluctant to
accept Rethemi coinage. Moneychangers also issue promissory notes as stated above and letters of exchange.
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