A pawnshop is also called a pawn broker

A pawnshop is a store that lends money in exchange of a valuable item that they can sell if the owner leaving it does not pay the agreed amount of money on time 

A pawnshop is also called a pawn broker 

Services offered 

They offer personal loans 

They resell items in case the loanee doesn’t pay back in time 

They also perform money transfers 

Activation of phones 

How pawn shops make money 

Basically, pawnshops brokers make money in a very simple way. They earn interest from the loans they offer and also from the sales they make on the retail goods. Those are the two major sources of income for the business 

Items that are commonly pawned 

Pawn brokers accept anything that is valuable but of course, there are those items that are pawned most. They include; 

Television sets 

Jewelry (whether gold or diamond) 


Household items 

While some lenders may pawn huge items that are of high value, most of them offer small loans 

Advantages of pawn shops 

They are a good option for those who need a small amount of cash 

Pawn shops do not have to follow up much on the loan payment because they already have the items to sell. Therefore, the loaner needs to be careful so as to repay the loan on time and take back their property 

It does not require any special skill or knowhow apart from capital and the ability to deduce the possible profit that can be made from the retail items 


The main disadvantage is actually about the high interest rates. The rates per month may seem okay but from the annual point of view, the interest rates are almost at 100%  

A few things that many people don’t know that they can be pawned 

Power tools such as; 

  • Garden forks 
  • Rakes 
  • Shovels 
  • Garden hoes 
  • Blowers 
  • Edger’s 
  • Trimmers 
  • Pressure washer 
  • Hand gloves  
  • Lawn mower 
  • Chainsaw 
  • Logging tools 
  • Table saw 
  • Circular saw 
  • Miter saw 
  • Jig saw 
  • Compressor 
  • Die grinder 
  • Router 
  • Circular saw 
  • Table saw 

Camping gears 

Handmade items such as 

  • Painting  
  • Woodwork 
  • Crafts 


Pet supplies 

Hunting equipment 

Items that pawn shops don’t buy 

  • Refrigeration 
  • Baseball cards 
  • Jordan shoes 
  • Pearls 
  • Dresser 
  • Motorcycle helmet 
  • Old phones 
  • Crutches 
  • Alternator 
  • Basketball cars 
  • Mirror  
  • Hospital bed 
  • Desktop computer 

Mistakes to avoid at a pawn shop 

you should ensure that you research about the price of the item you are going to surrender at the pawn shop so that you do not give away an expensive thing for less money in return 


Pawn shops are the best place to visit and solve your agent financial needs. But you should only opt for it only if you have done enough research about how various shops work