How Does A Pawn Shop Work?

Are you thinking of visiting a pawn shop to free up some cash, but you’re feeling apprehensive about the ins and outs? We have compiled an easy to follow guide, answering the most frequently asked questions so that you can understand how it all works!

Pawn shops by definition, are shops and businesses that will loan you money based on the value of your items you leave as collateral. People use pawn shops to avoid lengthy wait times for ordinary loan approvals, credit checks and stringent bank criteria. Pawn Shops offer you instantaneous loans that are hassle-free and offer competitive interest rates.

Do You Need Cash Fast?

Accessing funds on items and assets you already own is a fast and guaranteed way of obtaining instant cash or securing a loan. Porn shops offer repayment plans for the items you have loans against, they are often set for a secured amount of time, depending on the interest you wish to pay.

Paying off your loan and the acquired interest in the time allocated will enable you to receive your item back. However, if you don’t pay back the money you borrowed, your item will be sold to the public to repay the loan for you. Pretty simple, right?

How Much Can You Get?

The amount of money you can get from a pawn shop is dependent on the value of the item you are pawning. So, if you need a big loan, something more expensive will provide you with the equity necessary. However, the great advantage of pawn shops is that you don’t need an expensive item to get a loan, they accept a wide variety of assets and cater to a range of different loan sizes.

Alternatively, if you’re not wanting to pay interest on a loan, and you are happy to part with your asset, pawn shops will offer you cash for it, on the spot.

Pawn Shop Work
Pawn Shop Loans

Is It Safe?

In one word – yes, let us tell you why. In New Zealand, pawnbrokers must be registered, and specific requirements must be met in order for them to conduct business. New Zealand law ensures that every pawn shop must attain a current licence and be registered to trade and loan on goods. The licencing and registration process ensures pawnbrokers are maintaining a strict code of conduct.

Pawn shops must provide contracts to their customers that transparently outline the terms and conditions of their loan, and they are only allowed to charge interest on your items, no other fees. These regulations provide customers with trust and security, so securing a loan on your items is straightforward and hassle-free.

What Can I Pawn?

The best items to pawn are generally those that hold their value over time. The most popular items are often made of high-quality materials and are something everyone can use. Some examples of the most popular items pawned are:

  • Items that are gold and silver, such as bullions.
  • Jewellery.
  • Watches.
  • Antiques.
  • Coins.
  • And more.

The amount of money you can get for these items at a pawn shop will vary depending on the brand of your item, the condition it is in and the quality. If you are unsure if your items will be accepted, it’s best to give the pawn shop a call or send them an email. Pawnbrokers are professional appraisers, which means they will be able to tell you the value of your item and how much they are willing to loan on it pretty quickly.

Pawn Shop Loans

It’s important to know how pawn shop loans work and what to expect when you have your item appraised for a loan.
Pawning an item to secure a loan is a great way of accessing funds from items you already own. Simply call or email the pawnbroker so they can assess its value. After the appraisal, the pawnbroker will advise you on how much they are willing to lend you, they will never loan more than they can on-sell the item for, this ensures they can cover the possibility of you not paying it back.
A contract will then be written up for you, outlining the time in which the loan needs to be repaid, and the amount of interest the pawnbroker charges. If you do not meet the requirements of the contract and fail to repay the loan, the porn shop will gain ownership of your asset and sell it to repay the outstanding loan for you.

Where Should I Go?

Dealing with a reputable, trustworthy pawn shop is important. An experienced pawnbroker will accurately appraise your assets and will give you the best possible valuation to secure the cash you need.
If you are looking to have an item appraised to pawn or sell, get in touch with Elite Pawnbrokers. We offer comprehensive evaluations and professional advice to all of our customers. We offer same day loans and excellent cash rates for your luxury assets. Give us a call today on 0508 273 554.