Gadgets And Gold © 2015 All Rights Reserved
6450 Southwest Archer Road #120, Gainesville, FL, USA
The core of a pawn store’s business is making collateral loans. Pawn stores offer loans, secured by something of value. The pawn store may have other business elements such as retail sales. However, pawnbrokers focus on lending money.
Customers bring in an item of value, and the pawnbroker offers a loan based on a percentage of the item’s estimated value. The pawnbroker then keeps the item until the customer repays the loan with interest and any additional fees that may apply. Pawn stores are regulated on a federal, state and local level.
On average, customers receive only a portion of the item’s retail value. Remember, the pawnbroker is loaning money on the item, not buying it. The pawnbroker must consider the cost of storage, security and future demand for the item, along with the resale value if the loan is not repaid. Loans can be made for any amount, depending on the value of the pawned item.
Interest rates vary from state to state and usually amount to less than bank overdraft fees, utility reconnect fees, or credit card late fees. As an example, an $100 pawn loan at 25% for 30 days would cost about $25. Compare that to an overdraft fee or a credit card late fee that may negatively affect your credit.
In order to secure a pawn loan, you simply need an item of value and proper identification. Pawn loans do not require a credit check, bank account or co-signer.
Defaulting on a loan can never affect consumers’ credit scores. Because the loan is based on collateral—that is, an actual piece of property—the loan is considered paid in full when the item is handed over to the pawnbroker.
We can also purchase almost anything you bring in outright and offer you cash on the spot. This might be an option for you if you no longer have a desire to retain the property. Gadgets and Gold offers some of the most competitive prices on merchandise and also accept trades
Information provided by the National Pawnbrokers Association