What Do Pawn Shops Do http://www.pawnnerd.com/ 1

By: Brian - The Pawn Nerd

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If you have never used a pawn shop then you may not know what it is they do or what purpose they really serve. Pawn shops essentially do three things although there are additional services that some of them do offer. Loans The first and most significant thing that pawn shops do is that they make short-term cash loans to people against their merchandise. The merchandise is used to secure the loan. If a person is unable to pawn

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back their loan, the pawn shop will in turn keep the merchandise and resell it to recover their money. Because of this, these loans are often known as Non-recourse loans for the pawn shop. What that means is that if you make a loan at a pawn shop and dont pay it back, because the pawn shop will then resell your item to recover their money, they cant turn around and sue you for the balance of the loan at some later point in time. Thats one of the reasons that so many people prefer to use pawn shops as opposed to using some other form of short-term financing.

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If that wasnt good enough, pawn loans are also much cheaper than alternative means of coming up with emergency cash quickly. For instance, a pawn loan will typically be much cheaper than something like a payday loan or cash advances. In addition, the amount that you can borrow with a pawn loan will only be limited by the merchandise that you bring into the pawn shop. The more you take in, and the higher value those items are, the more you will be able to barrow.

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Buying Items The other thing that pawn shops do is that they buy items out right from customers. This is different from a pawn loan. With a loan, the customers can come back and get their merchandise at a later point in time. With a Sale the item is no long the customers to claim, it has just been sold. The pawn shop will typically pay you more for something should you choose to sell it as opposed to just getting a loan against it.

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Resale The other major thing that pawn shops do is that they resell the items that they buy. This works out for everyone involved because a pawn shop will be able to sell the merchandise they took in and recover the money that they loaned out. The customer will be able to buy some very nice, gently used merchandise and save a lot of money in the process.

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The person that originally made the loan on those items will be able to walk away happily having received the money they needed to cover an emergency expense. Hungry For More? Want more information about the pawn industry? Feel free to visit me at http://www.pawnnerd.com/ Thanks, Brian The Pawn Nerd