"Interested in Buying a Pawn Shop Business?"
The pawn shop business model is simple, customers pledge their property as collateral for a short term loan. When they pay back the loan, their property is returned – if they don’t pay back the loan in the time period specified, they forfeit their property and the pawnbroker sells it at retail value.
The pawn shop business continues to grow despite changes in the economy. Loan volume increases as the economy weakens and consumers face more financial problems. A decrease in consumer spending directly affects retail sales and they decrease as well.
The process of buying or selling a pawn shop business requires the advice and guidance of a professional with not just experience, but also expertise in the industry. There could be professional licensing required in conjunction with merchandise carried. For example dealing in firearms requires specific licensing and regulations that could change by geographical location. Pawnbrokers are also governed by federal laws that apply to financial institutions.
The Business Brokers at Murphy Business & Financial Corporation can assist you with industry research and regulations in conjunction with buying a pawn shop in your specific region. They will assist you with locating the right business that will meet your specific needs. Murphy Business has over 140 offices located throughout the United States and Canada, providing unmatched service with far reaching resources, thus making us one of the largest and most successful brokerage firms in the industry. Our Business Brokers have many years of experience in a wide range of industries and they know what it takes to create a high quality service oriented company.
Key Factors – Pawn Shops
- Demand reflected in the economy
- Annual growth over the last 5 years has been 2.6%
- Competition can come from other used merchandise outlets as well as new merchandise stores