So, you want to dip your toe into the world of pawnbroking? We like your style.
Whether you’re thinking about a career in pawnbroking, have an item to sell, or want to take a loan, we answer all your buying and selling queries right here in our ultimate guide to pawnbroking.
Let’s get to it…
What is pawnbroking?
There are two ways you can use a pawnbroker. The first is to leave something valuable as a deposit for a loan, and the second is to sell an item for an agreed price.
In both cases, a pawnbroker will appraise your item before making an offer based on its current market value.
Provided you’re happy with everything, a pawnbroker will deposit your item and transfer the agreed amount to your account – usually within the same day.
All transactions are guided by the Consumer Credit Act 1974, which, among other rights, means you can give notice to withdraw from an agreement within 14 days if you decide to change your mind.
Okay, basics done – let’s go a little deeper.
Why do people use pawnbrokers?
Unlike a bank loan – where it can take weeks for funds to hit your account – a pawnbroking loan is an instant fix for short-term cash flow.
Yes, you might pay a little more interest in the short term, but the convenience and speed of service is unrivalled.
What’s more, a pawnbroker doesn’t perform any credit checks and won’t ask you to complete endless forms about your credit history.
Instead, they’ll give you a same-day loan based on the value of whatever item you choose to deposit.
It’s that simple!
What can you pawn?
Generally, anything that can be re-sold.
At GA Pawnbrokers, we consider instant loans against most items, especially:
- gold and silver
- diamonds and gemstones
- cars and motorbikes
If you have another item you want to pawn, give us a call – you’ll be surprised what we can loan against.
What happens if you can’t pay back your loan?
If you’re not able to pay off your loan – and you don’t want your item to be sold – it might be the case that a pawnbroker can extend the borrowing deadline.
Should you have any doubts about making repayments on time, our advice would be to check the necessary terms with your pawnbroker before accepting a loan.
If a loan extension is refused, ownership of the deposited item is passed to the pawnbroker.
(Myth-busting bonus: A pawnbroker makes money on the interest charged on your loan. For that reason, the preferred action is not to take ownership of a deposited item.)
How much can you loan from a pawnbroker?
Your maximum loan amount is based on the value of your deposited item.
At GA Pawnbrokers, we typically offer loans ranging from £10 up to £100,000.
What interest does a pawnbroker charge?
Depending on your pawnbroker and the amount you wish to loan, interest rates vary between 3 to 10% per month.
At GA Pawnbrokers, 7.5% of the initial loan value is added to the redemption value for every month your item is with us. This means that, for a £100 loan, £7.50 is added as interest to the initial loan value. Representative APR 110%.
Our contracts are based on a seven-month lending period, however, you can leave your items in pawn with us by paying the interest owed to extend the contract.
Can you make payments towards your loan agreement?
We can’t speak for everyone, but at GA Pawnbrokers you can make part payments towards your agreement at any time during the loan period.
Part payments will help clear any accrued interest and reduce the loan amount of interest due in the future.
If you need an instant loan to fix a leaking roof, pay a utility bill, or perhaps fund a new venture, find out more about our pawnbroking service through our website, or call us on 01273 691 939.