Pawn shops exist to lend money and sell items. People visit the pawn broker to seek a loan in exchange for a valuable personal object which serves as collateral. Once the loan is agreed upon and relevant documents signed, the broker pays the owner immediately. The owner can also opt to sell the item for cash if they have no need for it.
Pawn items are second hand goods. The prices are therefore reasonable even when sold. It is fairly simple to pawn items for cash. It helps to have a sense of the monetary value of the item one is pawning. In many instances the items pawned have sentimental value such as rare jewelry.
Before pawning the item, it is useful to visit a number of pawn shops click here for pawnshop. Some are specialty shops dealing with particular items only while others will store an eclectic mix of objects. Get to know what pawn shops tend to accept and sell. This will help you select the item to pawn when in need of quick cash.
Once you present the item to the pawn broker, he or she will assess it and offer a fraction of its value for immediate cash. Although brokers will take a wide variety of items, they assess each item to determine if they can sell it. If the item is intended as a loan to be repaid then the repayment period is agreed upon. Relevant documents are signed and cash paid out.
The pawn broker will then write out a pawn receipt which will have information on the loan terms. Such information includes the expiry of the loan, the interest and service fee if any, and a description of the item you have pawned. The broker will then keep the item for you until you repay the loan.
You should keep the pawn receipt securely so that once the loan is repaid you can repossess your pawned item. Should the loan period expire and you have not fully repaid the loan you can renegotiate the payment and a new contract for payment is prepared.
Should you not return for the item after the expiry of the repayment period, then the pawn broker keeps your item and can sell it to other customers to recover the loan. The broker’s preferred choice is that the loan is repaid as it presents a greater advantage for profit than when the item is sold.
What Items Can You Pawn?
Practically anything can be pawned. The more common items are valuables such as gold and diamond jewelry. Others pawn guns (depending on the gun ownership laws of your country) and rare items of interest. Musical instruments also feature in pawn stores. Electronics and other miscellaneous gadgets are also found in pawn stores. The pawn broker is the key decision maker as to what he or she thinks will sell.
Some people wonder pawning items is legitimate business. Pawn shops belong to the category of alternative, and legitimate, money lending services. So do feel free to visit a pawn shop near you and browse to get a feel for what they do.