The pawnbroker has been a profession since ancient times. The profession is even mentioned in the Bible. From the earliest days people have needed loans or cash due to any number or economic situations. While the profession may be more regulated today, it remains little changed from ancient Greek and Roman times.
A bank loan officer doesn’t hand out cash or loans to everyone who comes through the doors with a request. A pawnbroker has much wider discretion in whether or not to accommodate a customer. A person in need of ready cash brings in an item of value to the pawn shop.
The individual may wish to simply sell the item for cash or use the item as collateral for a loan. If the item is used to secure a loan, the person leaves the item and takes the cash offered. The price is usually negotiated until both parties are satisfied. The pawnbroker will hold the item for whatever time required by law. Within that time period, the person who left the item may return, pay off the loan and collect the item. If the individual does not pay off the loan in the allotted time, the pawnbroker sells the item to recoup the money extended.
A pawnbroker must learn to evaluate a variety of items and have people on call who will authenticate items brought in. The pawnbroker must be able to figure out how much an item is worth, how much it would sell for and how much can be offered up front in order to make a profit. More info: pawnbroker NJ