HOW DOES A PAWN LOAN WORK?
Pawnbrokers lend money on items of value ranging from gold, platinum or silver and diamond jewelry to musical instruments,
televisions, tools, household items, etc. The loan amount is determined by the value of the collateral presented by the customer.
The loan is made against the collateral and not the person, so if the person chooses not to redeem their item, they may always come
back to do business with us again.
There’s no credit check or loan application, and the collateral is secured on our premises during the period of the loan. When a
customer pawns an item, terms of the loan are printed on the pawn ticket that is given to the customer. The pawn ticket states the
customer’s name, address, type of identification provided to the pawnbroker, a description of the item, amount borrowed, maturity
date, pawn service charge and total amount that must be paid to redeem the item.
The pawn customer can chose to redeem the collateral any time during the duration of the loan upon payment of the loan principal and
pawn service charge. If after a set period of time, the borrower has chosen not to redeem the loan, then the collateral becomes
the property of the pawnbroker. The pawnbroker may then sell the merchandise to recover the amount loaned and to cover
A PAWN LOAN DOES NOT HAVE TO BE PAID BACK. The loan was made on the item and not the Customer.
If a Customer chooses not to redeem their item, there is no credit effect, and unlike some other forms of lending, the Customer is
not trapped in a cycle of debt. We welcome back our Customers at any time for another Pawn Loan!!
DO PEOPLE BRING IN STOLEN ITEMS?
It is a common misconception that pawnbrokers receive stolen goods. Nation-wide statistics show that less than one tenth of one
percent of the items received by pawnbrokers are reported stolen (less than ONE item out of ONE THOUSAND items).
Our locations are licensed by the State of Texas and regulated by the Office of Consumer Credit Commissioner.
Additionally, all of our employees are required to be licensed and have been investigated by the State of Texas
Department of Public Safety. All licenses are renewed and reviewed on an annual basis.
Pawnbrokers also report detailed descriptions of all items that they receive to law enforcement.
Additionally, if Insta-Cash Pawn purchases the item, it is held for a period of time so that the law enforcement can do a thorough
check before being put out for sale. The criminals know this, so they sell their stolen goods to the hundreds of
thousands of other businesses that also deal in used merchandise, but do not report to law enforcement.
I HAVE HAD SOMETHING STOLEN, WHERE SHOULD I LOOK?
First, you should make a police report. After this, you should look at the following types of businesses that deal in used
merchandise, but generally do not report their purchases (or flow-through transactions) to local law enforcement:
• Jewelry Stores
• Flea Markets
• Gun Shops / Gun Shows
• Gold/Silver Buyers
• Wholesale Jewelry Buyers
• Second Hand Stores
• Collectible Stores
• Used Sporting Good Stores
• “Buy for Cash” Stores
• Police Property/Recovery Rooms
• Antique Stores
• Consignment Auction Houses
|Frequently Asked Questions
MAY I JUST SELL MY ITEM INSTEAD OF GETTING A LOAN?
Of course! If you do not want to get a loan and just want to sell your item, we will make an immediate cash offer.
HOW MUCH ARE MY ITEMS WORTH?
The pawning process begins when a customer brings an item into a pawn store. Common items pawned (or, in some instances, sold
outright) by customers include jewelry, electronics, collectibles, musical instruments, and tools. In some of our stores with firearms
licenses we pawn or buy pistols and rifles. Gold, silver, and platinum are popular items—which are often purchased, even if in the
form of broken jewelry of little value. Similarly, jewelry that contains genuine diamonds, even if broken or missing pieces, have value.
We assesses an item for its condition and marketability by testing the item and examining it for flaws, scratches or other damage.
Another aspect that affects marketability is the supply and demand for the item. A customer may offer to pawn or sell an item
that is difficult to sell, such as a surfboard or a pair of snowshoes in North Texas. While some items never get outdated, such as
jewelry, musical instruments and hand saws, electronics and computer items quickly become obsolete and unsalable and, therefore,
may not be worth as much to us.
To assess value of different items, we use guidebooks, catalogs, Internet search engines, and our own experience. We have been
trained in the identification of diamonds and the testing of gold and can lend or buy based on what the market is currently paying for
these types of items.
HOW DO YOU DETERMINE THE AMOUNT OF THE LOAN OR PURCHASE?
To determine the amount of the loan or purchase, we need to take into account several factors. One factor is the predicted resale
value of the item. This is often thought of in terms of a range, with the low point being the wholesale value of the used good, in the
case that we are unable to sell it, and we have to sell it to a wholesaler. The higher point in the range is the retail sale price in the
pawn store. For example, a gold ring may have been bought by the customer for $750 when new. However, as a used item in a pawn
store, it will only sell for $250 to $300. Since each loan or purchase is based on the item and not on the customer, we
have to purchase or make a loan on the item at a value so that we could sell the item and recover our costs, expenses and make a
profit. Some of these expenses include taxes, licenses, wages, rent, heat, electricity, telephone service, Internet, insurance, alarm