Pawnbroking 101
Why Use A Pawnshop?
Pawns provide a range of benefits including speed, convenience, and reliability.
At it’s core a pawn is a simple exchange of assets for funds. Unlike traditional lending this provides the client with significant benefits:
1. SPEED: Unlike a bank loan or credit application, most pawn transactions can typically be done in less than 30 minutes. This means that clients can meet their needs on the same day, often in the same hour. In today’s hectic world the ability to resolve an emergency quickly and easily is more important than ever.
2. CONVENIENCE: Building on the above, convenience is also a factor. There are no complex applications, paperwork burdens, or pre-qualifications. In addition, most pawn shops can assist people on a drop-in basis so there is no need for an appointment or booking. This makes for a simple, stress-free transaction.
3. RELIABLE ACCESS TO FUNDING: Predictable access to funding also plays an important part in the process. Almost anyone can qualify for a pawn transaction. The collateral based nature of pawning bypasses reliance on traditional models of creditworthiness. Pawnbrokers can assist clients that conventional lenders would view as “un-bankable”. This provides clients with peace of mind and the surety that there is a solution for their situation. If someone has an asset and a piece of government identification there are strong odds a pawn shop can help them.
4. PRIVACY: Pawns allow clients to access funding on their terms. They do not have to ask approval from friends, family, or business partners. In fact, pawns are a strongly self reliant transaction allowing clients to resolve cash flow issues independently and discretely. The transaction is not subject to credit approval or reporting so there are no long term implications.
5. NO DEBT: In a traditional loan the client barters off their future income in exchange for money today. In simple terms: they obtain safety today by incurring risk tomorrow. This does not happen with pawns because there is no obligation to redeem the item or repay the advance. Pawn clients are empowered with choices, not obligations.
