What Is The Purpose Of A Pawn Shop?

Why go to a pawn shop to get your hands on some quick cash? To answer this, we are going to take a deeper look into the purpose of a pawn shop and how you can best use their services to acquire a loan or free up some cash.
The first step in assessing how a pawn shop can accommodate your needs is by understanding how they work and what type of money they can give you access to. The services a pawnbroker offers can assist you in:

  • Paying your bills.
  • Accessing a small loan.
  • Making some cash from your possessions.
  • Obtaining a loan from goods you already own.

While these all seem like relatively normal financial transactions, pawn shops offer you an alternative to borrowing from banks and loan companies, which is what makes them unique and extremely handy for your cash flow requirements. While offering you the means to get your hands on some cash, pawn shops offer flexibility in their criteria, which can often be the only way for you to secure funds without credit checks and lengthy waiting periods. Let’s take a look at what arrangements pawn shops have with their clientele:

Collateral Based Loans

Getting a loan from a bank or lending agent is a big ordeal, in between the paperwork, waiting to be approved and the possibility of ruining your credit if you miss payments, most people don’t bother or find the process too rigorous. This is where the services of a pawn shop step in, offering loans that avoid hurdles that traditional lenders have in place.
Pawn shops offer collateral-based loans, which is the trade of a valuable item in exchange for money, with the agreement of paying it back and the item to be returned. The benefits of this type of lending mean that you can secure finance without undergoing a credit check, and the repayments can be somewhat suited to your independent requirements.
These loans can give you the ability to trade in items such as gold, silver, jewellery, watches, antiques and much more, with anonymity and privacy. Why not access the money and resources from your existing valuables? A financial boost of a collateral loan can give you the opportunity to start your own small business without the risk of losing your credit score, as well as giving you access to funds you have already invested in items.

display of various pieces of jewellery in a cabinet
cabinet filled with pawn broker goods at cash converters ready to loan

Cash For Goods

Exchanging your unwanted valuables for instant cash is a service only pawn shops can provide, which makes them skilled professionals when it comes to assessing your goods and providing you with a great cash rate. The purpose of this service is to provide clientele with cash for items they already own and no longer want, providing an end to end service that both parties are happy with.
So, what items will pawn shops accept? And how much can you get for them? While the answers can fluctuate between pawn shops, all professional brokers will offer you on the spot cash for:

  • Gold bullion.
  • Gold, silver and platinum jewelry.
  • Diamonds and gemstones.
  • Watches.
  • Antiques.

The service a pawn shop offers you is independent of banks and other lenders, which means you can trade your valuables in exchange for same-day cash, without the hassle of selling to the general public. New Zealand pawnbrokers must all be licensed, this guarantees you are provided with an accurate market value of what your item is worth and how much they are willing to pay you.

Better Deals

Another great purpose of pawn shops in the vast selection of goods they have for sale. With a truly unique selection of goods, they are a smart place to look for one-off gifts and unusual pieces. With high-quality second-hand jewellery, watches and antiques, shopping for you or a loved one can be a fun and exciting experience.

Because pawn shops buy, sell and trade-in luxury goods, you can be assured the pieces you buy have been skillfully appraised and their authenticity can be trusted. If you are looking for a standout piece of jewellery, a rare watch or an unusual gift, it’s always a good idea to check out a pawn shop, as they come across a wide range of items on a daily basis.

No Stress

Now we have an outlined of the services pawn shops offer their clientele, we can see their niche in the market. With a no-stress approach to finance, you can clear out your home and make money while you’re at it. Pawn shops make accessing money straightforward, easy and exciting.
If you have valuable items lying around at home and want to access some cash for that holiday or a new car, get in touch with Elite Pawn Shop. We offer discreet services that cater for both lending and cash trades and can advise you on the value of your goods. Feel free to call us on 0508 273 554, or fill out our online inquiry form, we would love to hear from you!