How Do You Start A Pawn Shop Business?
Pawn shops have their roots in ancient China in Buddhist monasteries. Wealth that was donated to the monastery was used as a foundation to lend to those in need. The monks would then lend to people at a rate of 3% or less. Not bad for 1812 AD. These days a pawn shop is where people take their valuable items to be used as collateral for a loan. After a predetermined number of days, the person can retrieve his item by paying back the loan plus an additional fee to the pawnbroker. Contact your state’s Small Business Administration (SBA). In some states it’s enough to fill out and submit a DBA (Doing Business As) form at the county courthouse. Other states have stricter licensing laws for pawn shops. Pay a fee. The application fee for a license ranges from $1,500 to $2,000 and it is to be paid to the non-depository division of your state’s Department of Financial Institutions. Submit documents. Along with the application fee, you will need to submit a verified financial statement (prepared
