Pawnshops offer two options to help their clientele make money. The first option is by pawning an item; the second is when the client sells an item to the shop. In this post we will discuss pawning and what exactly that means for perspective clients.
The core of a pawnshop’s business is making collateral loans. A collateral loan is when the borrower pledges an item as an asset for the loan, the loan terms are agreed upon based on the pawnshop, but typically last 4 months in NYC. At the end of the loan period, the borrower can either pay interest to extend his/her loan or redeem the loan for the principal plus interest and charges.
Customers bring in an item of value along with proper identification to EZ Pawn Corp; items can include jewelry, electronics, sport memorabilia and musical instruments. The pawnbroker will assess the item and offer the customer a fair loan price based on a percentage of the item’s value. The pawnbroker will then keep the item until the loan with interest and any additional fees are paid. If the borrower doesn’t pay back the loan within the designated amount of time, the pawnbroker retains the item.
Pawning is a great and easy way to get money while still being able to keep your items and because the item is used as collateral against the loan, defaulting on your loan doesn’t negatively affect your credit score like defaulting on a bank loan would.
EZ Pawn Corp offers their customers 4 months to redeem their item with the low monthly interest rate of 4% per month,. Cash loans can be made of all sizes with a minimum of $10, with no amount too high. If you want an estimate of how much your item might get you visit our website (http://www.ezpawncorp.com/) to contact a loan specialist right away.
Information was obtained from the National Pawnbrokers Association (http://www.nationalpawnbrokers.org/2012/6-things-everyone-should-know-before-going-to-a-pawn-shop/)