How to Become a Pawn Broker
- 1). Obtain a pawnbroker's license. This can be purchased for anywhere from $1500 to $2000, depending upon the state where the applicant resides. This license can be acquired through the state's Department of Financial Institutions. The applicant must also have a clean criminal record in order to obtain the license.
- 2). Obtain a business license through the city that will hold the pawnshop. The amount of this license will vary by city and state.
- 3). Obtain the money required to start the pawn shop thorough a traditional bank loan, or acquire the money from a family member.
- 4). Purchase several price guides that deal with the items you will be purchasing. Knowledge of the value of popular items, such as electronics and jewelry, will ensure that you do not give loans on items that are worth less than the value of the loan.
- 5). Rent a space for the shop. This shop should be in an area that is free of crime or other competing pawnshops. Contact a local real estate agent to inquire about suitable space for the pawnshop.
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