How Pawning Works
How Does A Pawn Shop Loan Work?
PAWNING IS NOT SELLING
Pawn shops and pawn brokers have been around for thousands of years. It’s definitely not a new concept, but many people don’t really know the difference between Pawning an item and Selling it. To put it in the most simple terms; pawning is essentially loaning money. Let us give you a quick rundown of how it works:
- You bring in something as collateral.
- PB Pawn and Jewelry Gives you a loan.
- You repay the loan with interest, and we return your asset.
We’ll identify the value of your item, determine a loan amount, and talk to you about the terms of repayment. If the customer elects not to redeem his or her collateral, they may opt to extend or renew their loan or forfeit their merchandise. There is no credit consequence for forfeiture and the items are then sold at a value price to retail consumers.