What is a Pawn?
A “Pawn” is a collateral loan secured by merchandise. When you pawn an item, you are given a time frame in which to come back for your item. The pawnbroker charges interest on the loan (like all other lending institutions) based on the amount of time that it takes the pledger to come back for their items. During this time frame, the items pawned are not displayed for sale, and are not offered for sale. If the pledger does not come back for their merchandise within the allotted time frame, the pawnbroker is then vested with ownership of the item. the pawnbroker can then sell the item to satisfy the terms of the loan.