When people walk into our offices, we hear all kinds of stories.
Some individuals are embarrassed by it, while others want to tell you their entire life story. Some people just simply want to share their circumstances with you.
It’s almost as though they feel the need to get it off their chest and tell someone about it. We hear about divorces, unemployment, and a few heartbreak stories however, there are also happy tales of new business endeavours or development, as well as joyful fathers seeking funding to pay for their daughter’s wedding.
When you think of pawnbrokers, you generally think of individuals selling gold for cash or the unworn watch your Nan got you for your birthday. While we still offer that, Buyback Loans focuses on a much broader array of goods.
The Licensed Traders and Pawnbrokers Association claims that business has increased across the board, mentioning middle-income individuals and small enterprises who are using pawnbrokers as an alternative lender as reasons.
It works in a straightforward manner. When a customer brings anything to pawn, he or she usually walks away with a loan for 60 percent to 70% of the item’s market value.
They have at least three months to pay it back, with the option of an extension if necessary. We, like the bank, make profit from the loan; this is referred to as a redemption charge, and it varies depending on the amount borrowed.
Lots of people are now using pawnbrokers instead of banks. Some pawnbrokers lend against large assets such as boats, cars or even planes. There really is no limit on how much a pawnbroker can lend out. If the item holds enough value to lend out even one million dollars then that’s how much a pawnbroker will lend. It is almost like a mortgage, but rather than having secured on your house, it’s secured on your item.
It is in our best interests to ensure that the client receives the item back (a common misunderstanding is that we want to sell the item). ” We make money off the redemption fees, and if we have to sell an item, we lose a potential customer.
Using a pawnbroker has a number of advantages. It is less expensive than a high-interest credit loan (payday loan)
However, the main advantage of using a pawnbroker is that you won’t have to go through credit checks as you would when applying for a loan from a bank or finance company. It’s straightforward, and there are no embarrassing questions asked about how to get money when you need it. You also receive it pretty quickly.
If you’ve never used a pawnbroker or are unfamiliar with the term, click here.
