Not everything goes as planned every time. If an unexpected expenditure has come up and you need to arrange for some quick cash but cannot rely on the traditional forms such as credit cards, bank loans, and others, what is the best way out?
The services of a reliable pawnbroker can be the need of the hour. Even if you do not have liquid cash, there’s a possibility that you own luxury assets like luxury watches, jewellery and others. Pawnshops allow you to use these valuable personal items like watches and jewellery as collateral to borrow instant cash loans! For instance, if you have a Rolex and want a quick fund for your needs, you can easily take a loan against your Rolex watch from a pawnbroker.
But, there’s a lot of confusion surrounding how the pawnbroking services work or who are these pawnbrokers!
Hence, we have put together this guide to pawnbroking to help you learn more about pawnbrokers and how their services work to help you decide the route for yourself.
Below we have compiled the most asked questions about Pawnbroking that will surely give you an insight into its functionalities.
Top 10 ‘Most-Asked Questions About Pawnbroking
1. What is a Pawn loan?
A pawn loan is when a customer receives instant funds for a short term in exchange for a personal item that holds value. The item will be in the pawnbroker’s possession until the customer finally redeems it upon the agreed terms in the pawn contract. The cash loan amount received by the customer depends on the value of the collateral, which can be a luxury watch or expensive jewellery. When the customer returns the loan amount, the pawnbrokers return the item to them.
The loan tenure varies from one pawnshop to the other.
2. Is it safe to pawn?
Yes! In fact, pawnshops are one of the safest places you can go to pawn your luxury assets. It is the pawn shops’ and, more specifically, the pawnbrokers’ responsibility to keep your items safe and in good condition while it is in their possession.
3. Why do people use pawnbrokers?
Typically, people choose pawnshops over other traditional modes as they can quickly trade their valuable assets for cash. Unlike other loan sources, pawnbrokers intend to keep the process simple, safe, and fast, making them even more popular. Moreover, the facility to avail instant cash for no credit checks makes it lucrative for the customers to visit pawn shops in the UK.
Customers can simply use their valuable goods as security for a flexible loan period and easily repay the loan amount to get back their items at their own pace.
4. Can you pawn more than one item?
Yes, absolutely! You can pawn as many different items as you want or pawn the same item multiple times. Now, that’s the benefit of a pawn shop. There is no risk of even maxing out your credit or being charged with extra credit.
5. Can you use a luxury watch as collateral?
Let’s just say that luxury watches are an unused source that provides immediate cash. You’ll be surprised to know that luxury watches are the most frequent form of collateral for fetching cash these days. For instance, Rolex is a highly reputed watch brand that enjoys great attention in the pawnbroking industry. Pawnbrokers are willing to offer quick cash loan for any Rolex model.
However, a few factors can affect the value of a luxury watch, including Rolex. They are the model, watch rarity, condition, age, availability of the box and papers, etc. Find a reliable pawnbroker to crack the best deal!
6. What are the advantages of pawn loans?
When it comes to securing some fast cash for emergency purposes, pawn shops are becoming more and more popular because of the real advantages. The list of benefits includes:
- No Credit Check
- Get Instant Cash
- Relatively lower interest rate
- Get Multiple Loans
- No Long Paperworks
- Items are Fully Secure
7. How does pawning work in the UK?
If you’re looking to pawn your item in the UK, make sure that you visit a reliable pawnbroker to avail of the benefits listed above. When you get the right pawnbroker in London, this is how the loan process works:
- You bring your item as collateral
- The pawnbrokers determine the accurate value of your item
- Sign the pledge receipt & agree on the interest rate
- Get an INSTANT cash loan based on the asset’s value
- Redeem the asset when you pay off the loan, including the interest
- If you fail to repay the loan amount, the pawnbroker will sell off your item to recover the loan
8. How do pawn shops determine value?
The loan amount you take away greatly depends on the value of your item. And, by this, we do not mean the value you paid for that particular item when buying it. The loan amount depends on the item’s market value at that particular time, and pawn shops are quite good at determining the market value of luxury items.
Whether it is a luxury watch like Rolex or exquisite diamond jewellery, the pawnbrokers carefully evaluate the collateral depending on the current condition, appraised value, or the ability to sell the item. They also use specific research tools to determine an item’s value for you to get the most money for your item.
9. Do you get more money selling or pawning?
This is one of the most prevalent questions of all. Well, the answer depends on your purpose. Do you want to part with your valuable item permanently or want to generate some quick cash? If the latter is your case, we believe pawning is what you’ll probably want to do.
For instance, if you own a Rolex and use it as collateral to fetch some cash, the watch’s value will continue to appreciate over the years. When you pawn, you retain the ownership of your Rolex and can always redeem it later while it appreciates in value. This way, you can sell your Rolex later or even use the same item again as collateral.
Another benefit of pawning is that you’ll often get more cash quickly without credit checks at a lower interest rate!
10. What happens if you don’t pay back a pawn loan?
When you avail a loan for your asset from a pawnbroker, you can redeem the pawn at any time by paying the value you owe. However, if you fail to repay the full loan amount during the specified period, the pawnbroker can sell your item to recover the cash.
In another case, if you cannot repay the whole loan value when it comes due, you can pay the interest on the loan and renew it for another few days or months. This completely depends on the pawnshop you are dealing with and can charge an additional fee each time you choose to renew the loan.
Now that you know how the pawnbroking process works, it brings us to the next most important question:
Which is the best pawn shop in London?
When looking for a pawnshop, the first and most important thing you’d be looking for is reliability. Many pawnbrokers assure high-end services but fail to live up to their expectations.
The Luxury Hut has been in the business for over 40 years and has extensive experience in pawnbroking. The professionals are constantly conducting market research to ensure that they provide the best competitive loan amount in the UK.
Reasons To Pawn With The Luxury Hut
Whether you want a loan on jewellery, gold jewellery, loans against luxury watches, or any other fine watch, the experts carefully assess the luxury asset to provide the best possible loan amount. As trusted London pawnbrokers, they intend to make the pawnbroking process as simple as possible and have laid out a very direct and easy way for you to avail of quick cash.
Reasons to pawn with them are:
- INSTANT Cash loan
- No Credit Checks
- Lowest Interest Rate
- Minimal Paperwork
- Contact-Free home collection
- No Early Retrieval/ Hidden charges
You can start by filling in an online form to get a FREE valuation of your asset.
What are the Items you can pawn with The Luxury Hut?
Get an Instant cash loan by pawning the following items:
- Luxury Watch (Rolex, Cartier, Patek Philippe, Audemars Piguet, Vacheron Constantin, etc)
- Diamonds (Loose Diamonds)
Do you want to loan for Rolex?
Rolex, as you know, is one of the most desirable luxury watch brands that drive a high pawn value. However, it is important to remember that the pawnbrokers will determine the final value depending on the various factors, like:
- Box & Papers
The Luxury Hut officials will offer you an INSTANT cash loan for your Rolex at the lowest interest rate after they quickly unlock its value, depending on the said factors. As one of the leading pawnbrokers in London, they aim to offer the best possible loan value, whether your Rolex is vintage or modern.
Not to worry, if you do not have the original box & papers for your Rolex watch, the officials will still pawn your Rolex at the best possible value without any credit checks.
Follow the 4 simple steps to pawn your watch:
1. Fill in the form
Start by filling in the online form and providing as many details as possible to get an accurate value.
2. FREE Quote
Get an INSTANT free quote for your Rolex watch.
3. Send your Rolex
If you are satisfied with the initial loan offer, send them your Rolex. Get a Contact Free home collection and a pre-paid shipping label.
4. Get PAID!
Accept the offer, sign the pledge receipt & get INSTANT cash!
The process is quick, simple and fully transparent. You get what your item is worth safely and securely.
If you want to take a loan against gold ornaments or a loan for a watch or diamonds, follow the same process as above to get your FREE quote today!
Alternatively, call them on 0207 242 9160 to book an appointment and visit them at their Hatton Garden office to avail of the loan in person.