Are you looking for a place to sell some of your used items and need cash fast? Consider using a pawn shop near me and you! Selling items at pawnshops can be a lucrative side hustle to make extra money for your family. Use our form to find a local pawn shop near you!
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What is a Pawn Shop?
A pawn shop can be said to be a business that grants secured loans to different kinds of people and the loans are not given unless they tender a personal property as a means of collateral.
Those who offer the loans are called pawnbroker and the money they make are interest charged on the loans procured against pawns or pledges.
Pawn was gotten from the Latin word “pignus” which means pledge, and the items which the brokers will collect are known as pawns, pledges or just collateral.
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What Items Does a Pawn Shop Accept?
A lot of items can be collected as pawns but a typical pawnshop takes jewelry, home audio equipment, musical instruments, computers, televisions, video game systems, power tools, cameras and other valuables that are related to collateral.
What Happens If I Don’t Pay Back My Loan?
If an individual refuses to pay back a loan, the pawnbroker will take full ownership of the item. They then have the right to recover the value of the loan by selling the item. The items can also be traded for other items.
Can I Trade Firearms?
Pawn shops are granted firearms licenses to trade rifles and pistols to individuals who meet up with the federal and state acquisition criteria. Firearms trading is exclusive to a few states in the U.S. Other items that you can pawn are platinum, silver, gold and broken jewelry with less value.
Why Use a Pawnshop?
Due to its versatility, for a lot of people to meet their daily financial needs, they tend to depend on the independent pawnbrokers for help. Pawnbrokers help to provide electricity, fuel for cars, pay for utility, they also make sure the landlord is kept away and provide a safety net for 30 million Americans.
Most citizens in the United States of America are now opting out for pawn shops, kiosks, and roadside shops to get by, selling electronics, tools, jewelry and other personal stuff for cash, as newly stated by Market-data Enterprises.
Over Twenty million American citizens made use of various pawn shops in the past years, as recorded by the national pawnbrokers association cited by WSAV, the NBC affiliate in Savannah, Georgia. Currently, there are 11,000 pawn shops in the United States of America. Which is over 50 percent more than those in existence in 1988.
How Much Does a Pawn Shop Make?
Pawn shops are generating quite a lot of money. In 2009, the average loan on a pawn was $100, which is $20 higher than it was in 2008. As a growing industry, last year alone, it generated over $14 billion in revenue, this year, it has been estimated to increase 7 percent which is an estimated projection of $15.6 billion, as reported by the market-data Enterprise.
With a fast-growing customer base, pawn stops is making its way into the neighborhood of both the middle-class and the rich. Even in exclusive Beverly Hills, ABC News reports that the one-percenters have brought in their Harry Winston diamonds, Cartier jewelry and even an NFL SuperBowl ring to pawn shops operating in this location.
What Are the Dangers of Pawn Shops?
So many pawn shops these days take advantage of people that are inexperienced and are looking to get quick deals done. It’s of great essence that before you start rushing to the nearest pawn shop, you put some things into consideration before making any form of transaction.
Here are things to put into consideration:
- Pawn shops that pressures you to go out of your way to borrow money will not just leave you swimming in debt but would also render you incapable of ever getting back your items, as recorded by Fox business. So beware!!.
- Make sure to inquire about both interest rate charged on the loan and also on any fees that is in association with the deal made. The fees can accumulate after some time, so be sure you make the necessary inquiries, so you know what you’re signing up for.
- If you must go to the pawnshop, have in mind the minimum price for your kind of stuff and negotiate following the money management international. Also, make sure repayment is made in time, else the pawnshop may keep your item or charge you excess fees.
How Much Money Can You Get From a Pawn Shop?
It’s predicted that over 30 million Americans visit the 11,000 available pawn shops in the U.S. yearly. For those with no financial resources, pawn shops can help them secure the loan they need. On average, they can secure a loan of about $150.
Advantages of Taking Out Pawn Shop Loans
A lot of microfinance institutions and Banks are bringing up loan offers that are competitive but the safest of them all is a pawn. At a pawn shop, it is not possible to get a loan above $100,000. Quite unfortunate, right?
When you think of it, a lot of emergencies are not that expensive. So visit a pawn shop when you need a small amount of fast cash.
Pawnshops have a lot of advantages when it comes to other loans. Here are a few of them:
#1 Loans Are Instant
Processing speed is one of the important aspects of signing up for a pawn loan. It can take you weeks to process and approve a loan from banks but its just a matter of getting in and getting out with pawn loans. You need a collateral with pawn loans.
#2 No Credit Checks
Another important reason why pawn loans are preferred to banks is that there is a no-credit-check policy. A pawnbroker will not mind if you have a positive or negative credit score. They will never ask about it because the collateral you have will be enough to secure the loan.
#3 No Impact on Your Credit Rating
Pawn shops have no business with your credit checks, so their services do not affect your credit rating. This is not the case when it comes to microfinance institutions and banks, as whatever late payment you have made will reflect in the performance of your credit.
#4 Get Multiple Loans
You can get a lot of loans at once at a pawn shop. if you decide to get a loan every day of the week, it is also allowed because it is based on collateral. For each loan request, you have to bring new collateral.
Here are some pawnshop franchise you need to get in the United States if you wish to be among the remunerative industry by being a franchise owner.
Best Pawn Shop Business Franchise
#1 Cash America
This is a local store that offers individuals easy access to convert items for cash. Cash America makes it possible for various types of items and products to be sold by customers.
The pawn industry has experienced a tremendous change that was brought in by Cash America along with its business practices and modern buildings.
With more than 500 locations spread across the U.S., Cash America is still expanding and growing. In the pawnshop industry, they are a well known and established franchise.
To acquire a franchise, the variation of cost solely depends on the store location and the size. The start-up cost ranges from $200,000 to $300,000.
#2 Money Mizer
Discovered in 1980, Money Mizer is an orderly, spacious and attractive store that trades both used and new items. A particular segment or department is committed to pre-owned and new jewelry, computers, sporting goods, antiques, cameras and other variety of goods.
Owning a Money Mizer franchise requires liquid capital of $150,000, a Net worth of $300,000 – $500,000 and a total investment of $260,000 – $950,000
#3 Port City Trade Pawn Shop
This franchise entails a page of 150 and a manual of the pawnshop also a two weeks real pawnshop hands-on training so you can get experience in trading (both buying and selling) valuables like gold and other things. To open an investment in Port City Trade franchise, you need between $100,000 to $380,000.
You will also need an initial fee of $30,000 and an annual renewal licensing fee (otherwise known as royalty feels) for $2,500. A ten years agreement terms is also required.
#4 God’s Silver Money
Being one of the biggest dealers in the U.S. when it comes to modern coin, and they have a headquarters situated in Indianapolis, Indiana. They sell and collect currency, silver and gold, old coins, precious metals and lots more.
Known for its world-class services and exceptional talent, being able to give customers different types of coin collecting choices and utmost competitive pricing at the same time giving the best authentication when it comes to best collectible numismatics. The total investment is around $125 and above.
#5 Gold and Silver Refinery
Being in operation for over 30 years, the Gold and Silver Refinery franchise buy and sell both gold and silver items to the public. The initial fee is $15,000, initial investment cost $25,000, royalty fee cost $10,000, the agreement terms are for 10 years and advertising is 20% of royalty fee.
#6 Pawn Castle
This pawn shop buys and sells valuables and they pay with cash. They also buy jewelry, gold, silver, precious stones, old cash laptops etc from people, and pay with cash only. A fee of $10,00p is paid upfront along with a 5% monthly fee of gross.
A 20% stock fund ownership is given to Pawn Castle which is later reinvested into the business from the 80% owned by the franchisee according to the franchise agreement.
#7 Castle Gold
This company also buys and sells gold. The important part of their business involves buying diamond, gold, pawning, and rental mart. Cash is paid for silver, gold and platinum scrap. Their business model is of three types and they all have various startup costs.
The Freestanding business (for drive-through) cost $300,000 for initial capital. The Shopping center business (for walk-in) cost $100,000 for initial capital. Lastly, the Street retail business (walk-in) costs $50,000 for initial capital.
#8 1st United Pawn and Loan
In this company, jewelry is pawned for cash, in addition to that, they also give loan to the public. For collateral, they collect different types of items. Since 1976, 1st United Pawn and Loan has been a financial institution people can rely on in Philadelphia.
It has been chosen by financial companies and law firms for a lot of independent appraisals. They deal in collectibles, money, precious gems, coins metal antiques and lots more.
#9 Countrywide Gold Buyers
In 2012, the company started its franchise although it was founded in 2006. Their main focus is to buy and recycle diamonds and precious metals.
The net worth requirement is $80,000, 6% of royalty fee, initial investment ranging from $42,500 – $72,000, an initial franchise fee of $29,000, 15% off franchise fee is the veteran incentives, and has 16 units in operation.
#10 Valley Goldmine
This company also turns gold to cash. They purchase silver, gold, platinum, coins, jewelry, bullion, scrap gold, sterling silverware, dental gold and lots more.
With not just an impeccable standard in business, Valley Goldmine grants quality private consultations to individuals to are interested. The liquid capital required is $20,000 and a total investment ranging from $19,565 to $47,105.
Interesting Statistics About the Pawn Brokerage Industry
According to statistics, one out of every four American households are either unbanked or under-banked and 40% of them use pawn stores. The pawn industry revenue at the end of the year is at $6 billion.
The National Pawnbrokers Association embarked on a survey and found out that there has been a conservative growth in the pawn industry since 2015. The growth which was linked to individuals who during the highest gold price periods, gave out disposable gold.
According to the survey, it shows a 3-5 percent increase in the pawn broker’s overall business, making the pawn loans the major objective of their business.
More than 80 percent of pawnbrokers confirm that pawn loan transactions were mostly carried out in their shops. One of the major reasons the pawn shop have grown is that they are customer friendly.
Have you used a pawn shop? Let us know by posting in the comments below!
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