Pawnbroker Business

How to start your own pawnshop, pawnbroker business

Are interested in starting a pawnbroking business?

There are several ways you can go about starting your own pawnbroker business but firstly you have to decide on what type of pawnbroker you want to be. Many pawnbrokers specialize in musical instruments others are focused on running jewellery pawnshops and some pawnbroker shops will buy everything and anything, so before you decide to start a pawnbroking business, decide on the type of pawnbroker you want to be. Second, you have to decide whether or not you are going to start a pawnbroking business from scratch or if you are better off acquiring a franchise (like cash converters, ezpawn or bargainpawn). This is very important because it will determine the amount

of your investment and it will most likely affect your income, atleast during the first few weeks of operation. Once you have decided on these key points, you should start by writing a pawnbroker business plan that includes a cash flow projection, location specs, demographics, etc.

Pawnbroker as a business:

A pawnbroker makes short term loans to people from all walks of life. The loans are secured and based on the value of a particular 'pawn' or 'pledge'. Pawnbrokers generally make their money on the interest charged on the loans secured against pledges or pawns but also on other 'cash sales' (see more about cash sales below). If the customer fails to repay the loan, he/she cannot 'redeem' the pawn or pledge. In this case, the pawnbroker is entitled to sell the pledge for an amount that will cover the loan and the interest. Any amount collected above this should be returned to the customer.

Cash sales for unreedemed pawns

All other income that does not include the interest you charge on loans against pawns are called 'Cash Sales'. These cash sales can be a number of things, such as the sale of unredeemed pledges, the sale of jewellery, scrap gold or perhaps it could be a fees collected upfront for services such as check cashing or foreign currency exchange services.

So, basically, 'cash sales' means all other income aside from your main pawnbroker business activity. Although most of your pawnshop customers may actually repay their loans in cash, they may also pay with checks or debit/credit cards, which means you can legitimately charge addition fees for such payment methods and add the fees to your list of Cash sales.

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Learn about pawnbroker referral program

As the UK’s leading online pawnbroker, we are one of the UK’s fasting growing secured lenders –
offering loans from £100- £1,000,000 at the most competitive rates in the industry. is reinventing pawnbroking.
We make short-term loans against valuables for a period of up to six months. Our service is discreet
and hassle-free, and valuables are fully-insured. Fulfilment is via online, telephone and pre-paid couriers.
We also offer a “home collection” service for loans over £5,000.

Pawnbroker Referral Program

We are inviting select IFA partners in the UK who have clients with short-term loan requirements to join
our Referral Program. Qualifying partners receive a 5% referral commission plus a new loan product:

· Meets All Needs - Loans from £100 to £1,000,000
· Best Rates - 4% simple interest per month (53.76% APR)
· Flexible Term - Up to 6 month loan term, no arrangement fees or early redemption penalties
· Highest Valuation - Lend to 40% of second-hand value, more than most all competitors
· Fully-insured - Pre-paid couriers, home collections, storage in secure facilities

5% Referral Commission

As a Partner, you receive a referral commission of 5% on the value of referred loans that close,
with 2.5% payable 30 days after the loan is issued and the remaining 2.5% payable at redemption
(for loans redeemed after four months).

The minimum qualifying loan in our Referral Program is £100.

Registration Process

To process new loan applications on behalf of your clients involves just a few simple steps:
1) Identify that your client has suitable items to secure a loan against
2) Collect information about these items
3) Collect personal details from the client
4) Apply online in 5 minutes (on your client’s behalf) at
5) Enter your Partner Tracking Code when entering your Client’s name (Edward Jones – BOR000x)

Or, if you prefer, just call Borro directly, its free, on 0800 756 9877.
Mon - Fri 8:00am to 8:00pm and Sat - Sun 10:00am to 4:00pm.
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