How does a pawn loan work?
Pawn loans are a quick and easy way to borrow money without a credit check or hassle. Loans are based on the value of your asset (e.g. gold, watch or car), not your credit rating or how much money you earn. Our pawn contracts are for a 7 month period. If you cannot pay back your pawn loan in full on the date it is due, you have the option to renew your ticket for another 7 months by paying all the outstanding interest due to date. You may also choose not redeem your item at the end of the contract term, in which case you will owe us nothing at the end of the 7 month period and we will sell your goods to get our money back. We provide pawn loans on a variety of items, including gold or other precious metals, gold and diamond jewellery, quality watches, musical instruments, cars, fashion, art and more. Simply bring us an item of value, along with a valid photo ID and proof of address and in most cases we’ll approve your loan in minutes.
What is a renewal?
If you are unable to pay back your pawn loan in full on its due date, you may get a renewal. With a renewal, you pay the interest that has accrued on your pawn loan in full, and a new pawn loan is written. The principal pawn loan amount remains the same, as does the interest rate, but the due date is reset for the full loan term and you get another 7 month loan.
Will I lose my item?
The majority of our customers repay their pawn loans and pick up their pawned item within the 7 month period. If a customer chooses not to repay the pawn loan, the item/asset for the loan is forfeited and we will sell it to recoup the loan and interest amount due to us.
How do you value an item?
We base pawn loan amounts on the value of your item – its current appraised value, its current condition and our ability to sell the item. We use all the research tools we have at our disposal to determine an item’s value and get you the most money we can. The appraisal process varies depending on the type of item—for example, jewellery is evaluated differently than a car. Our staff are trained to ensure that our pawn loan values are in line with the general open marketplace. We look at the item’s retail value when it was new, its pre-owned market value, it salability and its condition to determine its value.
How do you determine the condition of an item?
The condition of an item is always taken into account during the appraisal process for a pawn loan. If a Rolex watch comes in that is in perfect condition with the box and paper work and one comes in with a worn scrap, without the box and paper work, we will loan more on the first watch. When it’s general merchandise you want to pawn, we test each item to ensure it is in good working condition. The better the condition of your item, the more money we can loan you. This is true for any item.
How do you determine the value of jewellery?
When jewellery is the collateral for a pawn loan, we test the precious metals and diamonds to determine its worth. The diamond testing includes a visual inspection using a jeweler’s loupe, weighing the item, sizing (determining carat weight) any stones, and noting the cut/color/clarity of each—you may know this as the 4 Cs. In addition, we test the metal using a special acid that determines the carat of gold. This is done to ensure a clean test so there are no false readings on your item that may detract from what we can loan you.
How do you determine the price of gold?
The price of gold is based on market values, the price for which are linked the London Fix which are set daily.
London Gold Fix background:
Gold prices are set by what’s known as “The London Gold Fix.” Twice each business day at 10am & 3pm, five members of The London Gold Market Fixing Ltd. meet to determine gold trading prices, which are known as “benchmarks.” The five bankers each represent one of the five biggest bullion banks in London. The prices established by these bankers help determine gold prices internationally.
Can you give a quote on an item over the phone?
Unfortunately, we cannot give quotes over the phone because we need to see the item first.
Is my item / asset safe while in Pawn?
While your item is in pawn, you still own it. It is our responsibility to keep it safe and in good condition while it’s in our care. When you give us an item for pawn, we keep it in a secure area e.g. a safe. We also use specialist storage facilities for cars, art & fine wines. Your item will be safely stored until you come back to pay your pawn loan in full and claim your merchandise. All our shops are fully insured for the loan value of the collateral we keep.
Are Pawnbrokers regulated?
Yes. All pawnbrokers are authorised and regulated by the Financial Conduct Authority for consumer credit activities.