Have you walked into a pawn shop lately? The visitor numbers are up and it isn’t just people needing a quick buck who are walking through the door. It isn’t just the cash advance and payday loan businesses seeing an influx of customers, secured pawn shop loans are seeing an increase in merchandise for sale which reflects how negatively the loans are panning out.They may both be no credit check money opportunities when there is a desperate need for quick cash, but the two options are clearly different by definition and practice.* A loan at a pawn shop is secured. Property is used to establish the loan amount and it is then held as collateral for repayment. Cash advances are unsecured loans based on take home income.* A pawn shop will give 30 days to repay the loan whereas a cash advance lender will give about 14 days (on average).* The loan amount for a pawned item will be a fraction of the street or fair market value. The loan amount from a direct lender will vary between state regulations and monthly take home income. The final loan amount is set at the discretion of the lender or shop owner.* Some pawn brokers may roll over the loan similar to a direct lender, re-add the fees or new increased ones and set a new due date. There are brokers who will raise the cost of the loan to the resale value of the collateral. In other words, the price a broker would sell to a customer will be the new cost to the original owner.* If a person does not pay the pawnbroker nor extends the loan, the broker will place the item for sale in the pawnshop. The price will repay the loan plus bring in revenue. When you don not repay the cash advance, the lender will sell the loan to a collections agent.* Neither loan uses a credit check to establish the loan, but defaulting on a cash advance will hurt a person’s credit once it goes into collections.Whether you use a pawnbroker or a direct lender for your short-term loan, the choice is ultimately up to each individual. Some people may not own anything with enough value to obtain the amount needed. Others may not want to risk items which hold personal value. If there are possibilities that the loan payoff will not be affordable in 30 days, it is smart to hold off from placing precious items as collateral. A cash advance has even shorter term limits, but there is nothing held as collateral. When people choose not to repay these lenders, credit scores will be damaged by a collection agency reporting the debt in default.Don’t rush into a decision. Look at whatever options you have available and make the choice based on protecting your finances in the long run. If you have to pay a little bit more now in order to save yourself later it may not be such a bad decision. Be careful when considering fast cash opportunities; be sure to look into all possible fees. Know your bottom line costs before taking out the loan. The last thing you want is to have your personal item on sale to the general public.
Monthly Archives: July 2023
Top B2B E-Commerce Myths – Busted
There are lots of outdated myths, half-truths and misunderstandings floating around about B2B e-commerce that need busting. And the sooner the better. So let’s get to it. Here’s big e-commerce myth number one: We’re too small.Although I’ve heard it many times, I’m not sure where the “We’re too small for e-commerce” myth comes from.Maybe it’s because typically, the biggest suppliers in each category are the ones that are e-commerce enabled. So that leads to the assumption that e-commerce is reserved for large companies with deep pockets.BUSTED. In truth, size doesn’t matter.Ever since Jeff Bezos boxed up the first book ever sold on Amazon.com from his Seattle garage in July 1995, e-commerce has become the Great Equalizer. It allows the smallest of businesses to compete with the giants of their industry.Consider the start-up company that went from zip to $50 million in a few short years, becoming one of the fastest-growing companies in America.Or the local office products distributor that went head-to-head with three of the largest suppliers on earth and won part of a $42 million state contract.The fact is, no other technology in history has shifted the odds in favor of small business more than e-commerce. The small guys are not outgunned anymore. The Internet provides tremendous leverage and reach for small to mid-sized companies.Small companies can look big. Mid-sized companies can look huge.On the flipside, however, companies who DON’T adapt to the e-commerce revolution end up looking small and irrelevant — regardless of how big they are.The good news is, everything you need to get started is readily available.All the technology has already been developed. All the software has already been written. All the sales and marketing tips are at your fingertips, if you know where to look.The tools are easy to use, and the start-up costs are low.Too small for e-commerce? You kidding? E-commerce and small business are MADE for each other.