At Hamilton Pawnshop we want to make it easy for you to buy, sell and get a loan with us.
To do this we have listed a few helpful FAQ’s below.
If we can’t answer your questions here please send us your questions using the form provided on this page.
Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. Short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.
A. Pawning is the process of offering a secured loan based on the value of your personal property, which is used as collateral. There is a contracted period of time to redeem your item which of 3 months. On your contracted due date you can either choose to pay your loan in full and redeem your item, or extend your contract by paying one or more month’s interest due. If the item is not redeemed or extended by the end of the grace period. It is then forfeited and offered to the public for sale.
On average, about 80 percent of all pawn loans are repaid. Repeat customers make up the majority of the business, similar to any other lending or retail establishment. Pawnbrokers establish relationships with their customers because they often borrow against the same items repeatedly. Pawnbrokers offer non-recourse loans (A non-recourse loan is a loan for which the borrower cannot be held responsible for any amount in excess of the security for the loan, even if the value of such security falls below the level it had or that had been anticipated for it at the time of the loan) looking only to the item being pledged to recover their investment if the borrower chooses not to repay the loan.
Loan amounts vary according to the value of the item. Your loan amount will be determined according to factors such as demand and condition of the item. Not all pawnbrokers are the same and price will vary. Pawnbrokers base the value of the item on current retail worth, its current condition and the ability to sell the item. Pawnbrokers use research tools at their disposal to determine an item’s value and get you the most money for the item. The appraisal process varies depending on the type of item, for example, jewellery is evaluated differently to electronics or tools. Before handing over any cash, all items that pawnbrokers buy or sell are tested to ensure they work properly.
Less than half of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then regularly transmitted to law enforcement officers, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.
