Although pawnbroking began more than 3,000 years ago, the business has transformed to be a fast, easy and straightforward way to procure short-term loans over the past few years. Services provided by pawnbrokers are now considered to be a significant alternative to the services rendered by a high street bank, usually for two reasons:
First, a pawnbroker does not carry out any credit checks, nor a customer is chased for any debt. The pawnbroker makes an on-the-spot valuation of the item to be pawned and lend money right away.
Second, a customer is entitled to reclaim their luxury asset at any time within the loan period or after his/her contract ends, by simply paying off the original loan amount along with interest due.
With various famous hit television shows coming to light about pawning, the industry has obtained a point of interest in recent years. You may wish to borrow a small amount of money by pledging a luxury asset to a pawnbroker in London. But, before you head out to turn your precious asset temporarily back into cash, you should have an insight into the four fundamental skills of a pawnbroker that set them apart.
• Assess the value of luxury items accurately
Whether you want to get a loan against a luxury watch or an engagement ring, many aspects come into play when you decide how much you will obtain from your pawn loan. You may wonder:
‘How a pawnbroker determines the amount you will get for your luxury asset?’
The pawning process starts when a customer brings a luxury asset into a high street pawn shop. A pawnbroker looks at a wide variety of items as they never know what exactly may pitch in through their doors. It may be a broken or tangled gold jewellery piece, a pre-owned diamond engagement ring or a second-hand Rolex watch. A pawnbroker assesses an item with the utmost attention, care and precision to determine its value based on its condition and real market value. Performing various tests to determine the item’s nature and weight or examining it for any scratches, flaws or other damages, a pawnbroker always assesses an accurate value of a luxury asset that is a challenging, unique and admirable skill.
• Communication and reading people
As with any successful relationships, the secret to a successful business lies in good communication that helps to build relationships. Pawnbroking is not just approving a credit loan or making a sale; it is also about getting repeat customers. Pawnbrokers have to confront a wide variety of customers that come in for different services like a short-term loan or selling a precious item. Thus, while a pawnbroker knows how to skim people that visit their pawn shop, he/she also has the aptitude to embark on a conversation with anyone.
• Negotiation artistry
Whether you are pledging a pre-owned watch to obtain a loan from a pawnbroker or selling a second hand diamond ring to a pawn shop, there are always hundreds or thousands of pounds involved at some point. A pawnbroker will negotiate a price that you will be satisfied with and also that he/she can afford as well as turn around to sell the item and make a profit.
• Banking skills
Pawnbrokers’ earnings depend on the interest that is charged on the credit loan procured by a pawned asset. With an excellent proficiency in lending as well as banking practices, a pawnbroker determines the loan tenures and loan rates, calculating the interest based on the current market trends.