DERRY – Paula Spang has been here before.

Even so, Debbie Mackey needs to be sure that the Compaq laptop Spang slides across the glass top counter is still in good working order.

Mackey plugs it in and tries to remember how to click through the Microsoft Vista information boxes. Then she casually asks Spang, "How much do you need?"

"Just 60 bucks," says Spang. "I need to pick up a prescription."

"That's no problem," said Mackey, who would have easily given Spang more if she needed it, based on the value of the computer. But she knows why Spang is pawning her laptop -- the same reason most customers are willing to drop off engagement rings, electronics and gold for a fraction of what they're worth.

"They need the cash now," says Mackey. "I give them what they say they need, even if the item is worth more. At 20 percent interest, why should they pay back more than they can afford?"

While pawnshops are nothing new, they are finding a steadier stream of regular customers in this economy as people without jobs or sterling credit use them like they would use banks if they could.

"The guy that was just in here? He pawns the same rings every two months. It must have something to do with his cycle of disability checks or something," says Mackey. "He told me he needed $100, even though, based on their weight, they could easily have been worth $200. When he comes back in 30 days, he'll pay back the $100 plus $20 in interest, and take his rings back. It gets him through the month."

She knows most banks don't bother with small loans; and even if they did, they'd require more than a handshake and a gold watch to seal the deal.

"I have a lot of regulars, only because they are having hard times -- chasing Social Security checks or whatever. What bank is going to loan you $100 until your unemployment check comes? Someone like me can help them through," Mackey said.

The uptick in pawnshop business is a global trend, as noted as far back in December, when Bloomberg news was reporting that pawnshops were the leading source of small-business loans in China.

►Thrifty buyers turning to second-hand clothes

Pawnshops are an integral part of the larger U.S. trend in the "alternative financial services sector," which includes payday loan companies and check-cashing stores, currently a $27 billion industry serving 35 percent of the population, primarily the low-income, credit-challenged and "unbanked," according to a 2008 Marketdata Enterprises study.

Mackey said part of what motivated her to open "Once A Pawn And Time," two years ago was seeing the great interest in used goods at her husband's adjoining shop, Tool Liquidation Center.

"I wasn't so interested in power tools. I wanted to do more of the girl stuff, like jewelry. It just grew out of that," Mackey says.

The sign outside her shop says "high-end goods," which Mackey explains is one way of making sure she gets the kind of quality items her customers might be looking for.

Debbie Mackey, left, owner of Once a Pawn And Time pawn shop, pays out a loan to Paula Spang in exchange for Spang's laptop computer, which she will hold for 30 days. (CAROL ROBIDOUX)

"Pawnshops have a bad name. You usually think of some dusty, seedy place you're too embarrassed to go into, even if you're curious," Mackey says. "I am fussy about what I buy and even what I pawn."

For the most part, people who are pawning valuables come back for them. She estimates 90 percent of items pawned are eventually picked up, although not always within the first 30 days. Engagement rings are the most frequently pawned items, she said.

If a person pawns an item and does not come back within 30 days to reclaim it for the cost plus $20 interest, Mackey could sell it. But so long as the owner pays the interest each month, Mackey won't let it leave the shop.

"I've had some things here for a year, and the customers come in to pay the interest, usually on time. If it's worth it to them, I don't have a problem holding onto their things," she said.

"This bracelet?" she says, rolling the band of diamond-studded bling on her wrist. "The lady who brought it in never came back. I called and called and waited for months. Finally, I decided she wasn't coming back, and it was too pretty to sell."

Gold is what's bringing most customers in. They know the price is up, so they rummage around for whatever they can find.

"Unless it has some weight to it, it's not worth it for them. Most gold is too light."

As if on cue, two girls come in and lean on the counter. One of the girls pulls a small ring from her pocket.

"I wanna pawn this," she says, holding up a gold ring with two pearls.

Mackey looks it over.

"Hmm. Let me weigh it," she says.

She returns half a minute later. "It's only 22 bucks," she said. "You'd be better off selling it."

"Yeah, that's fine. I don't want it anyway," the girl says, taking the cash and leaving.

Mackey follows necessary precautions to avoid pawning stolen goods. Police send her regular reports of missing items.

"There are some things I won't buy: guns, for one. I just don't want the hassle. I will send them up the road to Al Nolan's place."

Mackey said that for years, Nolan's Jewelry and Pawn was the only pawnbroker in town. She said he's been a big help to her in getting started, and they refer customers back and forth.

"He told me he was ready to retire two years ago, but he's still up there. Guess business was good."

Times are tough, even for pawnshops. The trend in a down economy is that more customers are coming in to pawn for quick cash than to spend on bargains, says Mackey.

"Except me," says Kim Haskell, who is a regular of Mackey's.

"This place is awesome. I bought all my Christmas gifts here. I got a computer for my 12-year-old for $125, and a portable DVD player. They've got a little bit of everything. I even got my ring here," she says, holding out her left hand and wiggling the fingers to maximize the sparkle. "The main reason I come here is because I can trust Debbie. She won't take advantage of a customer, even when they are desperate."