Pawn Brokers Are A Great Source Of Quick Cash

The pawning or pledging of collateral in exchange for a loan has existed for at least three millennia in China and dates to ancient Rome and Greece in the western world. The basic concept is that an individual brings in an item against which he would like to borrow money. The pawn broker establishes a value for the item based on what he could receive for it if he must sell it.

If the amount is agreeable to the customer, he receives his loan and leaves the item with the pawn broker as a guarantee that he will repay the loan with interest. Should the customer not return for his item, it becomes the property of the pawn broker, who can then sell it and keep all of the proceeds.

Alternatively, the customer may prefer to sell the item outright. In that instance, the title for the property transfers instantly to the pawn broker. Like a loan, the broker must determine a price for the item that will allow him to make a profit from its sale.


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