Pawn shops aren’t just places where people can look for great finds on antique pieces and secondhand objects. Contrary to its secondary function as a boutique store, it’s also primarily a lending business. These products are in relatively good condition to get the best value in exchange for a short-term loan. However, most borrowers aren’t keen on getting their belongings back due to financial trouble or unwillingness to reclaim their property.

Under a borrower’s loan agreement with a pawn shop, the typical duration of their loan can be anywhere from 30 to 90 days. If you’re committed to getting back your property under these terms, you need to consider the loan repayment and the potential outcome if you can’t pay your loan back.

An Alternative to Traditional Banks

For various reasons, some people can’t access traditional lending options from specific creditors. Sometimes, people with poor credit scores can’t get a loan approved due to their current track record. Even if they do get granted loans, these financing options typically have high interest rates, which can cause borrowers to fall further in debt.

There are natural drawbacks to securing a traditional loan. It takes days to several weeks before you get denied or approved. Additionally, you’ll need to present plenty of financial documents as a prerequisite for borrowing. Thankfully, pawn shops eliminate these lengthy processes with just an exchange of products to cash instead.

A Chance to Get Capital from Scratch

The items people bring in pawnshops vary, from antique heirlooms to secondhand gadgets. Since there are practically no limitations to how much you can earn, people pawn different products with a substantially high market value.

Keep in mind that you get what you pawn for, so you should always gauge the profitability of the item you want to pawn off. This is because pawning your item opens the possibility of the pawn shop reselling it in the future. If you’re just bringing junk to the store, you’re likely to come home with almost nothing as well.

A Promise with a Pawn Shop

If you’re committed to getting your items back from a pawn shop, you may ask for an extension. Doing so will let you pay back the loan for a later date by applying an additional fee or interest charge to your current debt.

If you’re unsuccessful in paying back your debt even with an extension, you still have a chance to get your pawned item back. Pawnbrokers typically keep your item on hold before adding it to the shelf. Some states also have clauses on this time frame to ensure that they’re selling authentic products and not stolen property.

The last resort to claiming your pawned item is to buy it off from your pawn shop. You can coordinate with your pawnbroker if you wish to repurchase your item at full price so other customers won’t get to inquire about it. If you still don’t have the funds to secure your pawned item at this stage, you may have to say good to it completely.

Conclusion

Pawn shops aren’t just obscure stores where people can find new and old hidden gems; it’s also a reliable financing service for people struggling to make ends meet or looking to get quick cash. With the right product on hand, you can get a decent value for some emergency money without the hassle of traditional loaning practices.

At River City Pawns, we can help you with your financing issues with our reliable loans. We can loan you the fair amount you deserve for jewellery, gold bars, electronics, musical instruments, firearms, and more. If you're looking for a pawn shop in Princeton, KY, visit our shops today!