Pawn shops are places where a person can avail cash loans by temporarily selling/mortgaging a valuable good to the pawn broker as a collateral. The loan amount is decided and finalized by both the parties, and after some legal documentation and paperwork, the loan is disbursed with an applied rate of interest. The quicker and convenient provision for providing short term loans in exchange of wide range of valuable goods is the main reason why pawn shops are gaining traction in the market. Pawn shops are also a one-stop destination for collectors as many people visit pawn shops to sell possessed antiques, vintage goods, and artifacts to the pawn brokers who further find potential customers who’ll buy the goods at the right price. Investing in pawn business is considered by many investors as it is very economical and easy to start up a pawn shop.
Many of the pawn shop accept variety of items as collateral but some are specialized and deal only in some specific goods like electronics and jewelry. Also pawn shop have started doing business online using e-commerce. Customer fills out an application form, puts some relevant information about the object to be placed as collateral, after accepting the offer made by the pawnbroker, the customer ships the goods directly to shop owner and receives the loan amount. The pawnbroker offers loan amount for the collateral on the basis of its antiquity, value, condition. Pawn brokers before accepting antique goods require a proper document/paper issued from a recognized authority stating its authenticity to save itself from fraudulence.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
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