Essential Facts you Must Know About Pawn Shop

Pawn shops ever since people had fully understood the concept of money. These establishments offer services similar to banks. What’s better, however, is that the services of a pawn shop are available even in cases of emergencies. Either by selling valuables or pawning them, you can easily get money just by signing an agreement between you and the shop.

For the past decade, this type of business has gathered quite a reputation, both good and bad.

Here are some essential facts you need to be aware of regarding this business.

They are the Oldest Form of Credit Institutions

Definitely, there are no doubts that they solely hold this title since their system dated back to medieval times.

In the old days, local merchants simply give their money in exchange for a person’s valuable. During that time, the system is not yet formally recognized as “pawning”.  However, the lending procedure has been developed through the years, making it possible for shops to legally exist during the modern time.

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They Serve as a Storage for Valuables

Although not all businesses of this type offer the same services, some offer storage facilities.  Depending on the item, you can avail of the vault service offered by a pawn shop.

The monthly rate for this kind of service is calculated at about ten percent of the item’s price value. This is useful especially for people who have important valuables, but don’t have anyone to look after them.

Since security is questionable nowadays even in the safety of your home, some prefer to keep their valuables safe and secure in a safer environment. When your items are being taken care of by the shop, they will be held liable once your items got lost or stolen.

They Avoid Accepting Stolen Items

Contrary to what others normally think that pawnbrokers are unscrupulous, this kind of business is typically connected with the local police not only for security but also for law enforcement purposes. Due to the nature of their operation, it is essential for them to maintain close relationships with the government and security agencies.

A pawn shop is susceptible to robberies and theft, therefore, there is a need to tighten security.  This is the main reason why these shops require their customers to submit proofs of identity before offering any of their services.

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If those conditions aren’t fulfilled, the business establishment has the right to deny the transaction. If the shop suspects that the valuable being sold or pawned to them is stolen, they will immediately notify the police about the transaction.

Most Pawn Shops Don’t Ripped-Off a Customer’s Valuables

They are usually portrayed in movies as establishments that rip people off their valuables for a small amount. These things are usually not true since pawnbrokers, like any other business, rely on repeat transactions or business deals.  Operating in such a deceitful manner is sure to lead to bankruptcy even before they can break-even.

Needless to say, those shops need to satisfy their customers if they want to grow and stay long in business. Don’t expect, however, that you can pawn your valuable for even half of your item’s true worth.  The normal calculation is usually 1/3 of the amount you have paid for it.  Also, be aware that factors, such as present value, possible profit, etc. can accept the item’s value.

They are Accessible in Times of Need

Before, a pawn shop only accepts jewelry and other collector’s items like old coins, musical instruments, rings, bracelets, and watches. Now, you can also take your gadgets to the nearest shop whenever your cash runs short. Acceptable gadgets include camera, laptop, tablet, cell phones, etc.

As long as they see that these gadgets are working, they will no doubt accept them. For devices or gadgets like computers and smartphones, the shop will assess their value online and check them for physical defects. After completing the assessment and finding the item to their satisfaction and standard, the transaction will be finalized.  You can then receive the approved loan amount.

Some Offer Remittance Service

To extend their services to the general public, some shops offer money transfer and remittances.  Since most of their customers are families of expats and overseas contract workers, they expand their business to meet their needs.

Families of those working abroad would rather receive their remittances through these services than avail of bank services.  Aside from quick transfer of money, they also have lesser service charge compared to what the bank is usually charging them for the same amount.

Lastly, since these customers are the same set of people who regularly go to them for a quick loan once they run out of budget between paydays, they managed to establish lasting relationships with them.

For your immediate needs, check on some reputable pawnbrokers online, like Major Pawn to see what they can offer you.