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.