The history of Pawning 

People have for a long had a similar problem, the lack of cash. When situations happen and demand fast cash, there has always solved pawn person items that are valuable. The pawnshops will then advance some money for a contracted period, 90 to 120 days, with interest. The pawnshop owner may sell your product at the point of your default on payment. 

Three thousand years ago, the first pawn shops started operations in China to lend money to the poor at interest. In ancient Greece and Rome, pawnbrokers thrived by offering small loans to merchants to get their shops off the ground. The Catholic Church placed restrictions on the interest rate that pawnbrokers and pawnshops would charge, showing a decline in business.  

In Europe, pawnshops were an essential method of financing, and the authorities relaxed the rules to enable the poor to get short-term financing. Prominent families such as the Medici for Italy and the Lombard family in the industry were well-known financiers in Europe. It is said that King Edward the III pawned off his jewels to the Lombard family in 1388 to finance the war against the French.  

People require fast cash, and therefore, to prevent the Pawning of stolen items, in 1872, the Pawnbrokers act protected pawnbrokers who sold stolen items without their knowledge. The show also specifically stated the interest rate that was to be charged on articles and other guidelines to regulate the industry.  

Pawnshops and modern times 

The growth of EZ pawn shop has been on a steady rise because of the media attention they get. TV shows that show the operations in pawnshops have driven the interest in pawnshops for short-term loans compared to payday loans.  

How to buy and sell safely in a pawnshop 

Selling in a pawnshop 

Find the right pawnbroker 

The right pawnshop exists. The right pawnshop will deal with particular goods; for example, you right find a pawnshop that sells jewellery, clothing items or antique items. The best pawn shops will usually have a website where customers can rate and review the service they got. Once you feel comfortable with a certain pawnshop, you can proceed to the broker.  

Decide to pawn or sell 

When you pawn an item, you give the item to the broker for a loan paid with interest after the lapse of a period. Selling the item is transferring ownership of your item to the pawnshop. Before you visit a pawnshop, you need to look at certain factors, such as your ability to pay a loan over the period.  

Negotiate 

Remember that pawnbrokers are a reseller and not collectors of vintage items. Therefore, a pawn shop will give the lowest price possible to cater to their profit margin when they sell. 

Prove your claim 

Carry documents that will assist you in proving your claims, such as receipts and warranty certificates. For more expensive items, you need to give copies of ownership provided by the manufacturer.  

Show your items at their best 

Ensure you clean your items before pawning them. Put yourself in the buyer’s shoes who will buy the product and the state he would love to purchase it in.  

Pay on time 

Ensure you settle your loan plus interest in the agreed time. If you don’t, then ownership is transferred to the pawnshop. 

Buying in a pawnshop 

Select the pawnshop 

Do your research on the pawnshops that deal with the items you are interested in buying. Ensure the products you are buying have the correct ownership documents. The study is to avoid buying stolen goods.  

Negotiate 

Negotiate a price that is friendly to you. The price stated by the pawnshop should be your starting point, as this will open the space for haggling for the price.  

Read the contract 

Read the sale agreement very well. Different pawnshops will have different policies on returns, and others will offer guarantees on the ownership of the goods.  

Pay  

The last step is to pay for the product that you have purchased.  

A pawn shop is where a pawn broker gives you a loan in exchange with your items of value that he might be interested in until you repay the loan. 

How does the pawn shop work?  

The pawn broker exchanges their loans with valuable items like: 

1. Jewelry 

1. Computers 

1. Watches 

1. Musical instruments  

1. Firearms 

1. televisions 

1. gold e.t.c. 

usually, people are given loans to pay it with interest. In most cases, people are given the loan to repay it in a month time. If you don’t pay the loan and the interest in time or the agreed time, they can resell your collateral to recover your un-payed loan. You will see them preferring if the loan doesn’t get re-payed on time with interest, so that they may sell the items on a higher price. This is because when lending you the loan they make sure the valuable item or good can be over 60% worth more than the loan they give you over that item. Therefore, they can sell them item as it is new.  Sometimes they are willing to extend the due time only if they can get double or almost the loan, they lend you. Normally, their loan interests are always higher compared to that of the banks. At times, if the item you are exchanging for loan exists in large numbers in the pawn shop store, they are likely to give you less loan. If you consider the loan you need and the one, they are offering you, they may prefer you exchanging the item for another that doesn’t exist in large number. 

The pawn brokers really benefit from these loans by getting the interests. Also, can earn extra money from reselling the items if not payed loan and interest for.  

The best pawn shop relevance 

1. their loans are usually instant. Its not like the bank process where you have to fill in the papers, and look for guarantors. 

1. if you want to get rid of a certain item, they can help you to sell it. 

1. They won`t ask you for any credit checks. You just have to a sign the agreement with them. 

1. They highly, discourages theft by asking for the identification like national ID or driver`s license. 

1. Your collateral is always kept safe for whenever you complete repaying the loan you get it safely. 

1. They can issue you more than one loan at thew same time compared to the bank where you can`t apply for a loan without repaying the first one. 

If you want to do something, buy something that can be emergency you can always go for a pawn shop loan. It doesn’t matter how you pay it because even if you late for paying it, it wont affect your lendability contact pawn USA .