I am sure you have heard of pawn shops and of people pawning items but you may not know what exactly that entails.
The word “Pawn” when used as a verb as in “To deposit as security, as for money borrowed.”
In other words it’s a direct personal loan backed by something used as collateral.
Unlike banks, where when you request a loan the decision as to yes or no to loaning you the requested sum is base their decision on a number of factors including employment history, income, assets held and credit, Pawn Brokers use a much easier system. It is based on whatever item you currently own and are willing to place on a physical hold with them for the time frame of which the loan is outstanding. During that time, interest accrues on the loan and is paid to the broker.
Pawn loans are not intended as long-term cures for financial distress but can be a great viable option when you need short term cash in the interim. When managed correctly they can be a tremendous financial asset to have at your disposal.
How much can you borrow?
This number depends totally on the fair current market value of the items you have to pawn. The better condition your items are in (complete with no missing parts, scratches, dings, dents, wear and tear and so on) the higher the determined loan value will be. The market value can be accurately determined by a combination of personal acquired knowledge and online listings of the same or similar item.
What kind of items can be pawned?
Now that would be an unending list if we tried to include everything we have made an offer on the years! Video, Audio, Musical Equipment, Instruments, Smart Phones, Tablets, Motorcycles, Cars, Bikes, Jewelry, Diamonds, Watches, 3D printers, Firearms, Gun safes, Power tools, Video Games, DVD’s, Computers, Memorabilia, Collectibles, Antiques, Landscaping Equipment, Slot Machines, Furniture, Sports Gear, Rare Coins, Gold Coins, Collectible Foreign Currency, even Collectible Signs. If you think it might be valuable its always worth it to check, we just might make you an offer!
How long do you have to pay the loan back?
Subject to individual state laws, a typical pawn loan may have a term length of 30 days plus a 30 day grace period. If you cannot pay back your pawn loan in full, including any applicable grace period, extensions/renewals (where permitted by state law) are permitted to give you extra time which can be extended out for as long as you need it, even up to 12 months or more.
You may also choose to surrender your collateral (pawned item) as payment in full at any time.
Pawn shops main goal on a loan is to generate income based on the interest, not to procure your items. They are happy to work with you as much as possible to make your pawn loan a mutually beneficial transaction.
How to Claim Your Pawned Items
When you are ready to end the loan and take your property back, you simply need to pay back the principle of the loan as well as any remaining past due interest. At that time, you will be given back your merchandise in the same condition that you pawned it in. At First Pawn Jewelry and Loan we take pride in our business and treat your belongings as if they were our own – with respect and care.
If you are in the Southwest Florida area, we have two locations in Naples and Lehigh Acres, Florida and we would love to work with you to get you the cash you need.
889 Airport Road South, Naples, Fl 34104 | 239-434-7296
1331 Homestead Rd N, Lehigh Acres, FL 33936 | 239-369-2274
We look forward to meeting you!