Think that pawnshops aren’t a big business? Think again! While most of us think of pawnshops as only existing in shadier towns or rural areas, there are actually around 12,000 to 13,000 pawn shops in the US alone. Believe it or not, a whopping 30 million Americans rely on these pawn shops every year to make ends meet, buy or sell merchandise, or to supplement their rent. While some do peruse pawnshops for rare collectibles and valuable goods, many are utilizing pawnshops as a means to survive.

Pawnshops provide customers with short-term collateral-based loans. Where the average down-on-his-luck person can’t get a loan from a bank, they can get a straightforward loan from a pawnshop. All one has to do is take an item to a pawn shop and have the pawnbroker look it over. If the pawnbroker thinks the item could potentially sell, they will offer a loan at a fraction of its value. If you accept the offer, you get a bit of cash on the spot. Then there is a set amount of time to pay back the money borrowed. If the loan can’t be repaid, the money is lost as well as the pawned item. At this point, the broker can sell the item to make a higher profit.