How does a Pawn Shop work?
This basic information is taken from Wikipedia, the free online encyclopedia: “A pawnbroker offers monetary loans in exchange for an item of value to the given pawn broker. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral.” How the pawning process works: Within a certain contractual period of time, the pawner of an item may purchase it back for the amount of the loan plus some agreed upon fee. If the time elapses without payment, the pawnbroker is allowed to sell the pledged item to recoup the amount of the loan, which may have only been a fraction of its actual market value. Pawnbrokers often have a large number of formerly pawned objects for sale at their place of business, called a pawnshop, whereby they may recoup money that had been loaned out on an item subsequently forfeited by a pawn customer. Pawnbrokers can also purchase an item outright for cash with no
Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, etc.. These items maintain their value over a reasonable period of time and are easy to store, especially jewelry. All customers provide collateral, eliminating the need to distinguish high risk from low risk borrowers. Typically, loans are small, averaging between $70 and $100, although they can be as small as $10 or as high as several thousand dollars depending on the value of the collateral. The process is much the same as any other lending institution, with the primary difference being the size of the loan, the collateral and the holding of the merchandise until the interest or the loan has been repaid.
Herdez Jewelry & Pawn Shop offers the consumer a quick, convenient and confidential way to borrow money. A short term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, stereos, televisions, firearms, tools, etc. These items maintain their value over a reasonable period of time and are easy to store, especially jewelry.
usually – you take an item to the shop, and they give you X amount of money for it. There is a timeframe during which you can return to the store and give them X+ a little more to get your item back. If you do not return to get/pay for your item within the specified amount of time, it becomes the proprty of the pawn shop, and they will sell it to someone else.
