Cash Express is the number one pawnbroker in Philadelphia, PA, when you’re looking for quick cash. But if you’ve never pawned anything, you may be uncertain as to the process. We’re here to help.

What is A Collateral Loan

As a borrower, you have to provide some type of asset that will act as collateral, securing your loan. There will be a set period within which the collateral loan can be repaid. If you do not pay on time, the collateral becomes the payment for the loan.The possibility of having your item become the property of the lender is one of the reasons we advise thinking carefully about your chosen asset. 

What are Collateral Assets?

.1. Precious metals, gems, coins, jewelry.

This is one of the most common collateral assets. Once you know how much you need to borrow, you can assemble what you need for the loan. When you bring that (those) items to the Cash Express store, we’ll assess it (them) and let you know the loan amount, which is based on a percentage of your item’s value.

2. Real Estate

Private or commercial properties can act as an asset for a collateral loan. In this case, a lender’s representative comes and reviews the property. As with jewelry, your loan amount is based on that valuation. 

3. Stocks & Bonds

Securities are viable assets for a collateral loan. As with other assets, there needs to be a valuation and a quote for the lending amount. Should you default, the lender can sell the stocks and bonds to cover the loss.

4. Collectables & Valuables

There are a lot of miscellaneous things a pawn shop seeks that you can use as collateral. Examples include antiques, vehicles, power tools, musical instruments, electronics, and firearms. You can call ahead (215-922-1560) to make sure your intended pawnshop will consider your item depending on inventory.

5. Vehicles

This includes boats, motorcycles, motorized scooters, and cars. The valuation process is handled like real estate unless the item can come to the store.

What You Can Expect

Now that you know what assets you can potentially use for a loan, it’s nice to know how a collateral loan works face-to-face. The first step is having the lender assess your item. Most lenders use computers to determine prices based on current demands and condition of the item. 

Step two is handling the inevitable paperwork. You will complete a loan application with any documentation requested by the lender. For example, you’ll need to bring proof that you own a car in case the title has to be transferred upon default. There is no credit check involved.

Step three is bargaining. If you go into a pawnshop with a solid understanding of your item’s value, you may have wiggle room on the loan amount. This is also when repayment terms and loan duration are explained.

Then you get your money in whatever way you’ve agreed upon like a fund transfer or cash.

The experienced professionals at Cash Express are happy to help you with your questions. You can use our online contact form, phone (215-922-1560), or email us at info@pawnphiladephia.com to get your loan started.

Everything old is new again. Pawn shops originated in China about 3,000 years ago. And just like modern pawn shops such as Cash Express, independent business people offered short-term loans to commoners. The model created in Buddhist monasteries remains to this day.

The Greeks and Romans had pawnbroking establishments. As the Roman Empire spread, the prevalence of pawnbroking likewise grew. Mind you, only some were welcoming of the idea.

In Medieval Europe, pawnbroking was slowly formalized as an institution. When people wanted quick cash (sound familiar?). Local authorities oversaw the businesses to insure legitimacy. 

Come the time of the Roman Catholic Church, prohibitions on charging interest on loans were in place. The rule put quite a calabash on merchants trying to keep a business going. The Franciscans had some leeway and could offer aid to the poor. 

French Crusaders used the pawning system to broker their holdings to monasteries so they could supply their armies. The Church did not require a financial return. Rather, they garnered crops at an agreed amount in each season. 

The History and Evolution of Pawn Shops: Peasants and Kings Alike

In times of war, Kings would pawn their valuables, usually jewels, to increase the size of their war chests It’s worth noting that jewels remain a high-interest item at Cash Express. Both Edward III (1300s) and King Henry V (late 1300- mid-1400s) took advantage of the system.

The Renaissance was the proverbial golden age for pawn shops. They accepted a wide variety of collateral. In turn, they provided funds to people needing them. This remains true of modern pawn establishments like Cash Express. Diversity was a friend to both buyer and seller. 

Then the tides turned. In early 1600, there was an Act against Brokers in London, which remained firmly in place until the late 1870s. There was a viable reason for the Act. It was intended to deter counterfeit brokers, namely fences. 

Here and Now

Pawnbroking has become a regulated industry. There are laws about how much one can charge for interest, for example. Most areas also have licensing requirements and detailed regulations for pawnbrokers. 

As the internet grew, pawnshops put this technology to good use. They could share their goods with a wider audience and review potential retail sales for items. Additionally, online listings help determine if an item is stolen goods.

Some pawn shops have specialties, others diversify, and others still combine the two ideas. For example, Cash Express has Antiques by Ark as a spinoff focused on older valuable items.

Enjoying the Pawn Experience

Do you have items tucked in the back of a closet or attic that might have value? You can clean out your home and get money for the effort. Remember that items should be in good condition. You might want to call ahead to see if shops in your area are looking for your offerings. You can reach our shop at 215-922-1560. 

When you need quick cash, look at high-end items in your collection. Pawn brokers aren’t like second-hand shops. They can’t accept everything coming through their doors. If you are uncertain and want to provide detailed information, you can email us infor@pawnphiladelphia.com or use our online contact form. We are a trustworthy pawnbroker in Philadelphia, and our staff is happy to answer any questions you have.