Collateral loans, also known as pawn or cash loans, are at the core of a pawnbroker’s business. In fact, over 80% of pawnbrokers report that cash loans are the most common of all pawn shop services. If you need some immediate funds, getting a cash loan can be an excellent option.

Getting Cash Loans
Bring in something of value that you own. If the pawnbroker is interested, he will offer you a loan, which will generally be a small fraction of the item’s true value. The average pawn loan was up to $150 in 2011.

At the end of the transaction, you will receive a pawn ticket, which will act as the receipt for your item and will explain the terms of your loan, including fees, expiration date, and the description of your item.

The pawnbroker will keep your item until you can repay the loan in full.

Repaying Your Loan

There will be a deadline by which you must return to pay your loan and reclaim your item. This deadline is usually between one and four months after the transaction. There will be interest rates and fees added to the original amount of the loan. You must pay the balance in full, including the loan amount, any added fees, and interest rates.

If you do not come back for your item, the pawn shop will keep it. You will not owe anything, but you do lose your item for good.

Tips for Getting a Pawn Loan

Before pawning an item, make sure to get it appraised so that you know exactly how valuable your item is.
Search carefully for the best pawn shop. Every shop is different and some specialize in particular goods like electronics or antiques. Make sure you read customer reviews online.
Get all the information about the terms of the loan.
Ask about:
Monthly interest rate
Additional fees
Insurance
Necessary documentation
Pay off your loan on time.
Cash loans are incredibly common. Almost 80% of pawn shop customers take out a pawn loan more than twice a year. If you are in need of some quick cash, find out what kind of loan options are available to you.
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