When you need cash all of a sudden, and have some saleable items with you, the best alternative is to search for a pawn broker/pawn shop. A pawnshop is a business that offer instant cash loan against second-hand goods of value and lets the borrower obtain back their pawned items. Numerous people have fixed ideas about the business of pawn shops and they neglect to recognise that these shops provide instant cash loan to the people who badly require it. Actually, this business has been there from the Roman times and it has stayed unaltered over generations. Till this very day, it continues to be exercised as most of the borrowers find its functioning satisfactory.
How does the pawnbroker work?
The functioning of a pawnbroker is simple. Here, the borrower will have to possess an asset of value such as a car, a boat, a bike, a caravan, garden tools, jewellery or any second-hand goods of value, which can be deposited with the pawnbroker as collateral for borrowing cash money. As per the agreed time frame, the borrower has to return the loan money with interest to get back the possession of the item that has been deposited as collateral with the pawnbroker.
In case, the borrower is unable to pay the money at the specified timeline, they can extend the time frame to repay the loan amount with the pawnbroker, which must be done well before the expiry of loan repayment. In the case of failure to repay the loan amount within the agreed timeline and/ or at the end of the extended time frame, the pawnshop will sell the collateral (deposited item) and recover the loan amount and interest along with some profit.
Borrowers can also get cash for gold ornaments in whatever condition it may be. Good, broken or damaged gold – no issues, you can pawn gold for cash at a pawnshop.
How much cash loan does the pawnshop grant
Generally, a pawnshop will grant a certain percentage of the estimated original value of the asset that is brought for pawning.
Also Read: Instant Money Lenders – It’s All About Striking the Right Deal
