Introduction.
As we begin the first question that comes into our minds is what is a pawn shop? then after knowing what is a pawn shop, we ask ourselves who are they? What do they offer? And how do they help?
What is a pawnshop?
A pawn shop is a shop that lends money to people in exchange for a valuable item. These items are always left to the pawnbroker. Examples of these items include radios, TVs, Cameras watches, and many more contact value pawn .
What do they offer?
The basic thing the shop does is to offer loans to clients and earning interest on the balances of the loan. It makes a loan to a person who brings in an item such as a computer or a phone which will serve as collateral for the loan. The amount of money it is willing to give out will depend on the condition of the item brought to them, and also it may be affected by the pawns shop current state at the time of the loan. An example is if an individual wants to borrow a loan using a computer as collateral and the pawnshop owner already has an overflowing similar computer, generally, the shop will offer less money than if it were low on inventory for computers.
They also do;
Reselling and retailing of items- this is purchasing of finished goods and services by the consumer. If one has an already used item, the shop is available and ready to buy used items at a lower cost compared to the initial selling price. Once the item has been bought the pawnbroker will also sell the item at a price that he will make some profit over it.
Money transfer-they offer money transfers, this is a process of transferring money from 1 place to another this happens electronically or physically. When a pawnbroker does money transaction he acquires some commission from the company where the money is being transferred from and to the designation of the money.
How do they help?
- You get an instant loan.
It helps in processing of loans instantly. Compared to bank loans which may take up to a week for the process to be completed. In this shop, the slogan is to get in and get it. You will always need collateral (item for loan security) once you have agreed on a good amount the owner will take the item and give you the money instantly.
- The consequences are selling the item.
If you borrow a loan from a bank and fail to pay the loan back the penalties are always harsh, for instance, you can be denied a loan for the rest of your lifetime and may also face criminal charges others may list you in credits bureaus for the penalty of not paying the loans.
In conclusion
I would recommend this shop over bank loans because of its easiness to access and no harsh penalties.
