Why Pawn Loans are Better Than Bank Loans
In the past, when people hear the word “pawnshop”, they automatically associate the word with people who are in desperate need of money. There have been negative connotation associated with the term “pawn shop”, however the purpose of today’s pawn shop has changed drastically.
Today’s pawnbroker is serving the community and helping people and small businesses meet their financial needs, without the stress and hardships of traditional financial institutions. People prefer to go get their loans from a reputable pawn shop for various personal and business reasons, which are very practical and beneficial. Find out why everyone is getting their loans from a pawn shop!
The New Pawn Shop Client
Pawn shops throughout the nation are receiving a new kind of customer-the rich and wealthy. For these pawnshops, the average loan is around $20,000! Some of these customers bring in collectible platinum Rolex watches, some bring in silver and gold jewelry to pawn, and some even bring in prized antiques! The owners of these pawnshops say that their clientele have a wide scope of reasons for why they pawn their items. It is clear that today’s pawn shop client defies all previous stereotypes.
Why The Wealthy are Visiting Pawn Shops
Pawnshop owners claim that even the wealthy people run into financial crunches from time to time. Their clientele has a scope of reasons for pawning collectibles and jewelry, which are the same reasons as everyone else:
- Money for home maintenance
- Money to cover monthly expenses
- Money to maintain goods and living
- Money to start up a business
- Loans for individuals with bad credit scores
The Appeal of Pawn Shops
The pawn shop clientele have expanded over the years for good reason. Pawn shops attract people who are in need of a temporary loan to pay off some bills, a temporary loan to pay for school, a temporary loan to start up a small business and so on. In today’s economy, people have to jump through hoops of fire to secure any type of loan from a local bank or credit union, so getting a loan from a pawn shop is more appealing for individuals who need an instant cash loan for several reasons.
Benefits of Pawning (receiving collateral loan):
- No credit checks
- No extensive and hefty applications
- No extended waiting period for loan
- No negative credit report penalty
- Easier and faster to obtain in comparison to bank loans