You guessed it, right?
Pawn Shops are not your conventional types that sell the usual stuff. What then would you consider them to be? And, what merchandise do they offer? Do they differ significantly from conventional shops? Yes, they do. We have done a careful analysis and found out the following.
What they are
Pawn Shops are financial institutions that accept items as collateral for money lend. They also buy items at lower prices to be sold later at a profit. The loan given is on short-term basis, usually 30 to 60 days. In most cases, items of high value are preferred. They may include gold, silver, coins and scrape metal.
What they offer
They offer cash in form of loans for the items received. The loan is repayable within a specific length of time, plus interest fees. The items collected can be sold at a profit if the loaned individuals fail to repay.
How they help
They are very helpful to people who do not have other access to credit. These are the unemployed or underemployed with low income and poor credit. The pawned items are carefully selected. Those with high value and can be sold are preferred.
When pawning, you get to recover your item as long as the loan is repaid. This is opposed to selling where you forfeit your item at the start of the process.
After pawning, you still risk losing your item after failing to repay. In conventional shops, you can sell items for scrap that have no sentimental value.
When you pawn, less cash is obtained, depending on the worthiness of the item. This is opposed to selling where the item fetches a little more cash
For you to get back the item, the loan plus interest fees have to be repaid in full. In conventional selling, you can get money that need not to be paid back
Pawn shops offer cash for items you don’t even want. This is on a much faster timeline than if you sold your items conventionally.
There is a paradigm shift from the way Pawn shops were considered in the past. They were looked at with a lot of suspicion and contempt. The average person never considered the option of pawning. They thought that this was a business for criminals, where stolen items were disposed
This is no longer the case. A growing number of people appreciate pawning business. They know it is legitimate and beneficial to them. It has made life easier for customers.
You also know now. That it is clean business. Quality items are brought as collateral for cash. You can also do the same. There is no point to continue suffering.