Over the last few years, the pawn shop business has gained more exposure and achieved unprecedented popularity. Aside from the economic downturn a few years ago when people found themselves in need of short-term solutions for getting cash, these pawn shops are more visible because of shows such as Pawn Stars and Hardcore Pawn. These cable shows expose people to how the business works and their significant role in the community.
The Pawn shop industry has been around for many years. In the United States, they have been in existence since the 19th century. Our establishment, Metropolitan Pawnbrokers, located in the vicinity of New York, has been around for 25 years. During the last few years, the business has flourished because of the increase of low-income earners in urban areas. Low-income earners are our main customer base. Unfortunately, the term “pawn shop” has become associated with being shady. However, our business is well-established and reputable; having built a solid client base that has given us trust over the years. Our operation is regulated by the Federal government. There are in fact 14 statutes and regulations along with state and local laws that govern our day to day operations. We are especially helpful for people in need of cash who will otherwise be not be served by mainstream lending institutions such as banks.
Our pawn shop is a place where people could get cash for valuable items that they do not need anymore, or valuable items that they need to sell in order to get cash for bills and essentials. They could also use these valuable items as collateral for a loan. Our website www.cash4jewelrynow.com has a list of specific items that can be traded inside and our clients have to abide by these strict rules. We are known for our excellent customer service, a far cry from the negative reputation that is depicted by media.
If you’ve never been inside a pawn shop or just wondering how it works, here are 5 essential things that you should know.
1. Whether you need to exchange items or use items as collateral, the first thing you should figure out is what valuable item you have that you could use in exchange for money. For instance, our appraisers and staff at Metropolitan Pawnbrokers accept all types of jewelry items such as watches, rings, earrings, necklaces, bracelets, and broaches.
2. When you bring an item or several items inside the shop, our trained associates will assess the value of the jewelry. Our assessors are experienced and knowledgeable in their field. We will give the customer a fair price based on quality, weight, and current value of the item. The loan amount that we will give is usually a small percentage of the actual value of the item. If the customer needs a bigger cash amount, they have the option to bring in more valuable jewelry items. It is ideal to bring a couple of items to sell or pawn in order to cover the amount of cash that you need.
3. If the customer is satisfied with the amount, then be ready to make a trade. We will give cash in exchange for the jewelry items. If the customer is selling the item, they will get cash immediately along with a receipt. If the customer wants to use the item as collateral, they will receive a document called a pawn ticket. As a general rule, we prefer collateral-based loans versus outright selling of the items. The reason behind this is because loans offer more gains for us because of interest rates.
4. A pawn ticket states the amount of the loan that the customer will get in cash on the same day. The ticket also specifies the terms of the loan – how much will be paid and how long the payment duration will be. The most common duration is 3 to 4 months. At Metropolitan Pawnbrokers, our usual duration is 4 months. The pawn ticket also states the percent interest per month. We lend at 3% per month.
5. When you pawn any valuable item, the best thing about it is that you are able to recover it. This of course will not happen if you sell the item directly to us. Some people opt to recover very valuable or sentimental items rather than sell them. The pawn ticket usually states the deadline or expiry date. The pawn ticket also states that the customer will have to pay off the loan by the date written there. When the customer is able to pay the loan in full, then they are able to get their valuable jewelry back.
When the customer is unable to pay the loan amount, we get to keep the item. There are no other payments or collectibles to be made. The average percentage of people who do reclaim their valuable items is as high as 80%.