Newark Pawn Shop

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Pawn shops provide the average person a simple and fast way to obtain cash, either through a temporary loan or in exchange for a valuable item. Throughout the years, the pawn shop industry has been fairly recession-proof due to the fact that it can be difficult and time consuming to receive a loan from a bank or other traditional method. Pawn shops can be very profitable, but require the business owner to have a different level of skill and knowledge than in a traditional retail establishment. Skills Needed: Customers can pawn items for a loan or sell them outright to the pawn broker. Let us say that an item is pawned for a loan. Both the customer and pawn broker agree on a loan amount, interest to be charged on the loan and a time by which the loan shall be repaid. What if the customer does not repay the loan plus interest by the agreed upon time? If this occurs, the pawn broker can then offer the item for sale to the public. Much of what a pawn broker does is determine a value for any given item to be pawned or sold and/or establish a loan amount for that item. Therefore, the pawn broker must be skilled in this area or partner with experts who are. Significantly overvaluing or undervaluing items can result in hurting the business. Legal Requirements: Because a broker handles financing transactions (providing loans to customers), the store owner must apply for a pawn shop license with the state in which the business is located. The state also charges a fee

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