pawnbrokers

Pawnbroking is a form of secured lending in which a pawnbroker provides a cash loan in exchange for personal property pledged as collateral. The borrower retains ownership, but the pawnbroker holds a lien on the item until the loan, plus interest and any fees, is repaid. If the loan is not repaid by the due date, the collateral may be sold.

Appraisal determines the loan amount, typically a fraction of the item's resale value. Loans are usually short term, with redemption periods of weeks to months. A pawn ticket identifies the pledged item and terms; if redeemed, the loan is settled and the item returned. Unredeemed collateral is sold to recover the debt.

Common eligible items include jewelry, watches, electronics, tools, and musical instruments. Some items, notably firearms, may be restricted by law. Pawnbrokers may also buy items outright rather than extending a loan.

Costs vary by jurisdiction and operator. Interest and fees are often regulated; APRs can be high. Pawn shops provide quick liquidity for people who lack access to traditional credit, though borrowers should weigh the cost of borrowing against the risk of losing the collateral.

Regulation typically covers licensing, record-keeping, consumer protection, and resale requirements. Reputable operators maintain transparent terms and comply with local laws to protect borrowers and the public.