A pawn shop is almost like a bank, in which it gives and accepts money, just differently than a traditional bank does. People bring in their property and are given cash in exchange, before using that cash and getting it back. Then once the ‘loan’ is paid back to the shop, the item is returned.
If the customer wishes to simply give their items away and not pay the loan back, then the item is sold to recover the losses to the ship. Pawnbrokers are regulated by the government and often give out larger loans than banks and credit unions because they know that whatever item is offered in exchange is going to be reclaimed.
What can be pawned?
Jewelry, musical instruments, and almost everything that is considered valuable can be pawned. If it’s worth some money, it can be pawned and made as a loan. However, fake jewelry or any stolen property is strictly unpawnable. The proof of purchase for most items is required, as well as for the items to be working.
Gold is especially valuable, as is jewelry and collectible coins and old paper money as it can be resold easily and is worth a lot for a loan.
Starting a Pawnshop
In order to start a new pawn shop, a surprising amount of training is needed to properly assess the value of items and the trends in the marketplace. Often, going to a pawn shop and simply listening to mentors and other experts on their pawn shop journey and what they needed to do and face will be the best help.
A professional pawnbroker is a hard thing to be, but with a bit of hard work and some inside knowledge of how the marketplace works, the shop of your dreams might become a reality.