When you require cash instantly and have some sale-able valuables, the best option would be to look for a pawn shop. Such a business can provide immediate cash and allow the borrower to get their pawned items back. This is an alternative to borrowing from an Edmonton payday loans company like Blue Copper Capital.
Most people have predetermined ideas about the business of pawn shops and they fail to appreciate that these shops offer fast cash to the needy. In fact, this business has been practiced since Roman times and it has remained unchanged over generations. It continues to be practiced till this day, since most borrowers find its working satisfactory. Almost every country of this world is familiar with this type of business.
What are Pawn Shops?
This business provides immediate loans against collateral, which is often represented by a household or personal possession of the borrower, who can collect the pawned items back on repaying the borrowed amount within a specified time. However, loans offered by pawn shops form a very small percentage of the price of the item pawned. For instance, on pawning a diamond ring worth $3000, the shop may offer just $250-300 as loan. So, it will not be wrong to compare pawn shop business to collateral loans or payday loans, as the borrower offers some items for getting the loan.
Different shops have different rates of interest and buyback policies. Some of them charge a flat rate of interest of 1 percent for the first week, followed by higher rate of interest for the subsequent weeks. Many charge a flat rate of interest, without giving any consideration to the time the borrower may take for returning the borrowed money. The redemption period also varies with the dealer. The usual period is one month, but many pawn shop owners offer longer periods and charge additional interest when the borrowers ask for an extension of time.
Another aspect of business is to provide cash on consignment basis. It means that you allow the pawn shop owner to sell your item, but you get paid only when the shop owner sells that item. Of course, he’ll keep his margin as per the agreement. Or you may sell your items straightway to the dealer and collect cash on the spot. The dealer then displays the items in his showcase for selling purposes.
Common Items Accepted
This varies with pawn shop owners and the policies they may follow. At one time they accepted items like properties, cars and jewelry made from silver and gold, studded with precious stones. Even today many shops accept these items plus other items like guitars, drums or any musical instrument for that matter.
Present day pawn shops generally accept expensive electronic gadgets like computers, laptops, cell phones, TVs and DVD players. Certain specified shops accept firearms too.
Can I Pawn Guns And Rifles?
Many pawn shops deal with firearms and thus accept them for providing loans. They need to have an area earmarked for selling the guns. Before selling firearms to such a shop, you should ensure that the shop owner has legal permission for this trade. Those people dealing with guns need a license and buyers need to possess the appropriate documents. In most cases, the buyer would need to have a proof of residence and state permit along with other documents. These days, one can easily locate a licensed gun shop by searching the Internet.
Unlike electronics equipment, firearms do not lose their value too soon, making them some of the best items for acquiring loans quickly. Apart from jewelry and other items in silver and gold, firearms are among the most popular items traded by such businesses. Due to their financial and emotional value, most people do their best to recuperate firearms, even when the interest rate is up to 25%. Most customers will manage to repay the loan and get back their items within 30 days.