February 01, 2020 - Pawn Resources
Pawn shops are brick and mortar stores that accept used possessions of value from their customers, and in exchange they provide a cash loan or payout. On the flip side, customers also frequent pawn shops to purchase goods at a great deal, such as on guns, jewelry, electronics and power tools.
While PawnGuru is revolutionizing the pawn shop experience by allowing anyone to compare offers online from their local pawn shops, it is still important to understand the fundamentals of how pawn shops work. Read on to learn everything you need to know to get started.
Pawn shops are the best way for people to get fast cash in a pinch, especially those who are unbanked or underbanked. Unbanked refers to those who do not have an account at a bank or other financial institution. If you fall into this group, you’re not alone. According to the Federal Deposit Insurance Corp., there are 17 million Americans who fall into this category.
As for the underbanked group, it is composed of 51 million Americans. These folks have access to a bank account, but choose to supplement it by using alternative financial services such as pay day loans or cash advances.
That being said, pawn shops are not solely for the unbanked or underbanked. Many savvy shoppers from all backgrounds know they can find treasures at these shops for a fantastic price. It is a well-kept secret.
Here is how a pawning transaction works:
Here is how to sell an item at a pawn shop:
How is how to buy an item at a pawn shop:
While you can pawn or sell a wide array of items, here are commonly accepted items:
Now that you know the basics of how pawn shops work, here is the best way to pawn, sell or buy an item today to ensure you get the best offer possible:
David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.More Articles