In this day and age of uncertain economy and unexpected expenses there are times in people’s lives when they need to make some additional quick money and find themselves exploring a variety of different ways of coming up with the finances they need. One of the seldom explored avenues to get that quick cash is by visiting those pawn shops in London is filled with.

How to Get Cash from a Pawn Shop

There are actually two different ways that people get cash from a pawn shop. One way is to pawn an item the other is to sell it outright. Let’s look at how each method of acquiring cash from a London Pawn shop works.

Pawning an Item

When you take an item into a pawn shop and pawn it, what you are actually doing is getting a cash loan from the pawn and they are using the item you bring is as collateral for the loan. The pawn broker will look over the item that you bring in for collateral and will set a value on it for the amount of money they are willing to loan you based on the type and value of the item you are submitting for collateral. The amount of the loan is usually quite a bit lower than the actual value of the item, because if you are not able to buy back your item within the set time period, the pawn shop must sell the item for enough to make back the money they loaned you and any interest that has incurred during the life of the loan.

In most cases, the pawn broker will offer you a monetary loan amount and explain to you the amount of interest they intend to charge. (Usually somewhere between 5% and 12%) as well as the period of time you have to pay back the loan and retrieve your pawned item. (Usually 30 days)

If you agree to the conditions the pawn brokers lays out they will take your item and give you the money and a pawn ticket or receipt that states the item your used to secure the loan, the amount of the loan, the rate of interest and the payback period as well as the current date.

If you do not pay back the money plus interest in the agreed upon time, the pawn shop will then have the right to sell the item you used for collateral in order to get their money and interest back.

Selling an Item

Instead of pawning an item, you can simply sell it out to those Pawn shops in London. Keep in mind that pawn shops are in the business of making money so they won’t give the amount the money that your item is worth. Items that are likely to be resold quickly usually earn a high percentage of the actual value than those items that may take months or longer to sell.

In addition to pawning or selling items, London pawn shops are also great places to find used items that you may not be able to find anywhere else. So if you are collector or simply like unique items, checking out those pawn shops might be a good idea.

Whether buying, selling or simply pawning an item, London pawn shops are excellent places to meet your need.

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