Pawnshop – What they are, what they offer, how they help, etc

A pawn shop is essentially a business that offers secured loans to people with personal property items known as collateral and is operated by a pawnbroker who oversees every activity in the shop. Collateral can be anything of value traded for cash. Whilst multiple commodities can be pawned, pawnbrokers typically accept musical instruments, electronics, watches, antiques, jewelry, power tools, cameras, gold, etc. Pawnshops have been around for the longest time with their fundamental intention of loaning people fast money. Ever since the beginning of time, there has been a great need for instant cash. In today’s society, the high demand for means to acquire money is startling. It has overseen the development of different varieties of lucrative businesses that will provide a cheap and fast source of money. 

What do pawn shops offer? 

Pawnshops are regulated by the state level in the United States, every state has its rules. Let’s take a look at how pawn shops me near work in the state of North Carolina. 

If you haven’t been to a pawn shop, you are missing out on some great bargains.  When you approach a pawnbroker, you’ll be able to: 

  1. Buy new or used merchandise. 
  1. Borrow money by putting up something you own. 
  1. Sell used commodities. 

For you to get money from the pawnshop by either pawning your item or selling it,  there is a pawning process that the pawnbroker must follow. Once you bring your item to be pawned, there are laws that require the pawnbroker to establish the identification of the seller through photo identification such as a driver’s license. Afterward, the pawnbroker examines the item for marketability by testing for any damages. To assess the value of the item, guidebooks, catalogs, and search engines. The pawnbroker will typically lend you 25% to 60% of the item’s resale value.  

Once you successfully pawn your item, you’ll in turn receive some money and a pawn ticket. The ticket will indicate the item you’ve pawned, the amount of money loaned, and the duration of getting your item back that is 30 days. Within the 30 days, you can return to the pawnshop to: 

  • Pay the full amount and retrieve your item. 
  • Pay the monthly fee to extend your loan for another 30 days. 

If you can not meet the deadline for repayment again, the pawnbroker will keep your item for good. 

As for the interest rate, the maximum interest a pawn shop in North Carolina can charge is 2% per month. 

How pawn shops help. 

You may be wondering what is so intriguing about a pawn shop. Why do people keep going back to a pawnshop for a loan when they could get it from a bank? Going to a pawnshop may not be as bad as you think, it could be a lifesaver when you’re in dire need. So how do pawn shops help people? 

  • Instant cash. 
  • Easy – the procedure of securing a loan is effortless. 
  • No credit check – if you have bad credit, pawnbrokers won’t deny you a loan. 
  • Low-interest rates. 


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