How to Become a Pawnbroker

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Opening a pawnshop can be an career. However, pawnbroking may not be glamorous or even safe in some areas. But if you're interested, you can open a pawnshop with some hard work and dedication. The job will certainly acquaint you with some interesting characters, increase your familiarity with unusual items and, with luck, will eventually turn a profit.

  • Familiarize yourself with regulations in your area. Most areas require a pawnbroking license, which can be difficult to attain. Furthermore, you will need a business license and successfully pass a criminal record check. Due to perceptions of the pawnbroker business, licensing is necessary to avoid being shut down and prosecuted.

  • Learn to assess value. This is the heart of the pawnbroker business. If you are unable to assess value accurately, you will fail. For starters, obtain a pricing guide. This should give you accurate assessment of the current market value of products.

  • Purchase or rent a shop. Location is another vital component of the pawnbroker business. You want to avoid shady customers and scammers the best you can.

  • Specialize in items you are very familiar with and know you can readily sell. Jewelry is an excellent option.

  • Do not accept any item that appears stolen. The risk outweighs the reward. Do not sell anybody's collateral until the loan period is over. You don't want to lose clients. Finally, don't be a pushover. Set your loan rates and prices and don't budge. Clients should not have the power to negotiate with you.

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