Advantages of Pawn Shops
Back in the 1600′s when America was being settled, pawn shops existed as a principle means of financing. They’ve been important ever since. In fact, thousands of years before banks existed, mankind was making pawn loans, because pawning is so easy. You leave an item of value with the lender, who loans you cash in return. When you return to repay the loan and interest, you get your item back. In the event you don’t repay the pawn loan, the lender keeps your item to sell to recoup the investment.
Without pawn shops, you wouldn’t have a good way to borrow a small loan for a short period of time. Banks aren’t happy to make loans of a few hundred dollars for a month or two, because they’d make little money on these small loans. But our pawn shop is happy to provide the small, short term loans you need.
An advantage is we can immediately make a loan without delay, because we have no complicated or costly loan application and approval process. In fact, another advantage of pawn shops is we do no credit checks when making a pawn loan, nor do pawn shops report you to any credit agency in the event you never repay your pawn loan. Instead, we have the item you pawned as our security so we can resell it to recoup our loss in case you don’t make your loan payments.
The amount our pawn shop can loan you depends on the conditional, quality, and value of the items you pawn. Another factor is how much demand there is to buy your item, in the event the pawn shop ends up having to sell it. The more the pawn shop knows your item is worth, the higher the amount your pawn loan can be.