For those in need of a short-term cash injection into their bank account, the old-fashioned pawnbroker can be an ideal solution. All that you really need are some assets behind you, and in our possession-rich society, almost all of us have some of those.
The way that pawnbrokers work is to use this personal property as collateral against the money that they lend to you. This process is quick and easy, requiring no credit checks or complicated negotiations on either part. It also means that you’ll receive the money you need promptly i.e. as soon as an agreement over the value of the item is reached.
If you’re considering a pawnbroker as a viable borrowing solution for you, here are a few top tips to bear in mind…
Tip One: Spruce Up Your Items
Often, the items that people choose to hand over to a pawnbroker are ones that they don’t use very often, such as antiquated watches, old jewellery or dusty vintage furniture that they’ve dug out of their garage. Covered in dirt and grease, it’s very hard to assess an item’s true value, both for you and your pawnbroker. Taking the time to clean things up is helpful to you both, but to you in particular. The less money that your pawnbroker can offer you, the greater the profit he’ll stand to make if you default on a payment. He’ll be much more experienced at valuations than you, so at least give yourself the opportunity to assess the item in top condition. This will help to lessen the risk of you having the wool pulled over your eyes when it comes to negotiating a price.
Tip Two: Don’t Be Afraid to Negotiate
If it comes to a sale, the pawnbroker wants to make as much profit on an item as he can, so he’s going to offer you as little as he can get away with when it’s time to talk money. This doesn’t mean that the initial value he offers you is the highest that he’s willing to go, so be prepared to negotiate. A good tip is to work out how much you want beforehand. If you need £100 to cover a bill, then try asking for a little above this when you start discussing amounts. If you can provide the pawnbroker with a ballpark figure to work with, he’s less likely to go in as low as possible, and instead will try to save some time by negotiating a figure that suits you both.
Tip Three: Pick Your Item Up Well Before the Due Date
If you’re bartering with an item that you love, then don’t run the risk of losing it. Make a point of reclaiming your possession at least two days before its due date. Things have a bad habit of going wrong at the last minute, and you don’t want to find that traffic, overrunning at work or transport problems stop you from saving something that you love. If you fail to reclaim it on time, then the pawnbroker will have no chance but to sell the item, and that’s a risk that simply isn’t worth running.
Follow our top tips today to ensure that your pawnbroker experience is a positive one.
Image credit: http://www.theguardian.com/business/2011/dec/21/pawnbrokers-booming-amid-high-street-gloom