October 1, 2022

How do you know if you are dealing with a quality pawnshop?

A pawn shop can best be described as a combination of consignment stores, moneylenders, and second-hand stores. With that said, a Melbourne pawnshop should behave like a proper business. Anyone coming in should feel comfortable bringing their items into your shop.

There are certain signs you have to look out for in order so you know you are dealing with a quality business.

Pawnshops provide small loans

The main business of pawnshops is to provide small short-term loans by taking valuable items as collateral. If you need cash immediately, you can get a pawn loan and the pawnbroker will hold on to the valuable item for a specific amount of time. To get the item back, you need to repay the loan within that specified amount of time. Most people who take out pawn loans usually return for their valuable items, but when they don’t the pawnshop can sell the item and get their money back. The more valuable the item the higher the price you are likely to get.

Understand what you have and what its value is

A good pawnbroker will know what it is you are bringing in and what its real value is. He will be able to tell if you are bringing real gold jewellery or gold plated jewellery. Pawnshops have appraisers on hand as well as people who can repair damaged jewellery. They know what the value of your item is and whether they will be able to sell for a good price or not.

They should be licensed

Pawnshops offer the service of money lending but they are not to be confused with other short-term lenders. A pawnbroker needs a license to offer loans based on collateral offered. He also needs a license as a second-hand dealer in order to sell items they obtain and sell back to the public.

They should have adequate security

If you are going to entrust your valuable items to a pawnbroker for a specific period, you need to be assured that your belongings will be safe. Pawnshops are usually the most secure places, they have to be, their business depends on it.

They should be well established in the community?

A Melbourne pawnshop needs to make you feel comfortable. You should get the sense that they care enough to give you the cash that you need and to keep your belongings safe during the loan period. Most pawnshops are entrenched as part of the local community where they are based. They cultivate a special close relationship with the community they operate in.

Consider how long they have been operating? Ask around from other people about the service and their prices. You should feel comfortable doing business with your local pawnshop. How is the customer service? Are they friendly and willing to help? Are they empathetic and do they make you feel that you can trust them to give you fair prices? You don’t have to pawn your valuables to the first pawnshop you come across. Shop around until you find a pawnbroker that you are completely comfortable with.