A Pawn shop is a type of a shop which lends loans money to people in exchange of collateral items at a particular interest for a certain period of time. 

In such a business, someone can retrieve their items if they pay back the loaned money on time. Failure of loan payment within an agreed duration may lead to loss of property as the pawn broker may intend to sell the items in order to attain his money back. 

To avoid fraud issues, laws have been enforced such as identity cards and driving license utilization. The law enforcement is strictly due to thieves who bring stolen items in exchange of loan.   

The History and Origin of a Pawn Sphere. 

The history of Pawn business is sourced from Italy where it originated.  The business is symbolized by three spheres which are suspended from a particular bar. The three spheres symbol is indirectly accredited to the great Medici family of Florence in Italy. This history is termed as the Italian region of Lombardy, whereby pawn shop loan originated as loan and banking services. 

Services Offered by a Pawn Broker. 

The main service offered is loan in exchange for collateral items which can be anything valuable purposely for money. 

In such a business, one may bring along valuable items such as household appliances, cars or books in exchange of money. The pawnbroker examines the items and decides if they are worth sales. The pawn broker has a right to reject the items if not valuable. If the items are worth selling the broker offers a loan equivalent to the items at a given interest for a certain period of time.    

Amount Offered by a Pawn Shop. 

As the collateral items may be worth the loan needed, the pawn broker does certain calculation including the interest in relation to the prices of the items. The pawnbroker legitimately lends a loan of approximately 25% to 60% based on the item’s worth. A pawn broker may also give a discount in some events.  

Items Offered  

  • Gold and Silver Jewelries  
  • Watches 
  • Electronics 
  • Mobile devices 
  • Instruments 
  • Books 
  • Household appliances 
  • Collectibles 
  • Cars 

Prons Embraced  

  • Instant loans 
  • Multiple Loans 
  • The upshot is only the item sale 
  • Guarantee of item’s security  
  • Interest relates to the loan period 
  • Absence of credit records 
  • Absence of probing and paperwork 
  • No effect on credit rates 

Cons Embraced  

  • Exorbitant fees and interests 
  • Loss of Property due to late payments 
  • Denial of sales by a pawn broker 
  • Loan Limitation 
  • Debt cycle acceleration 


Grace unto the people in need of loans as they can request loans at low charges in exchange of collateral items. This business benefits those who may not be able to request loans from lending institutions or commercial banks EZ pawn stores