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Six Compelling Reasons To Fund Your Small Business Through Online Pawn Stores

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Running a small company is truly difficult, most especially for start-up businesses. The most common trouble every aspirant entrepreneur is where to score start-up funds and contingency to keep their business running.

 

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Getting bank loans other than other financial institutions may be helpful, however, the process and requirements can be complicated if you do not have the required paperwork. This has been a common situation for many small business owners. Most likely if you haven't established a name or a business brand yet, then it will be extremely difficult for you to get approved for a business bank loan.

 

If you see yourself in this scenario, getting loans from an online pawnshop might be the solution to your problems. We collated below six compelling reasons why you should consider getting a loan from an online pawn store to fund your small business.

 

1. Pawn stores don't care about your credit score or history.

For most people who don't have a credit rating yet or maybe could have a bad credit score because of some financial issues before, the chances of being approved for a bank loan could be 0% or next to never. It's quite frustrating especially for those who haven't had some credit history yet since they aren't given a chance to prove that they are capable of paying off loans. Credit score determines how trustworthy you are to pay off debts, so if you have a negative credit history, most financial institutions will not approve your loan request.

 

This is where a pawn store comes in handy since they won't be needing a credit investigation (C.I) or they won't care about your credit score. Meaning, anyone is qualified to avail of a loan to build or maintain their small businesses. The only thing that you will need is an item that has a market value. 

 

There's a wide range of accepted items that can be pawned, from pieces of jewelry to an everyday appliance, you have the ability to pawn them as collateral in exchange for a loan. A pawn broker will appraise the market value of your item and tell you beforehand how much they can offer as a loan for those items.

 

2.No need for requirements or documentation.

Almost all traditional institutions such as banks will require their consumers to provide documentation such as Income tax return, certificate of employment with compensation, and bank statements as proof of income source. For a business loan, documents such as state permits, business registration, and other financial statements are needed for you to qualify in getting funded. But again, if you are starting up, those things can be extremely hard to produce and you might not have the funds yet to process all of those, that's why you need a loan.

 

Through a pawnshop, it will not be necessary anymore to provide those requirements and paperwork. The only document that's valuable in the eyes of a pawn shop appraiser is the receipt or the proof of the value of the items you plan to have as collateral. Having an item that's on the pristine condition can add up to its appraisal value and helps you get more cash from it.

 

3. They provide the quickest way to get cash.

If you are applying for a loan from banks, you must be patient in waiting. The usual bank loan processing can take up to a month, considering the application process, requirement preparations, credit investigations, and other bank processes. Online pawnshops offer a speedy way to get cash since the disbursement will be instant. Once you agree to the fair estimate value of your item, you'll just get the receipt with your information on it and get your cash right away. This includes the payment term, interest rate, and item description of your collateral.

 

Once you agreed with the loan offer in exchange for your item, an online pawnshop can deposit your funds on your preferred payment option within the same day. You can check online pawn stores like EZ Pawn for a fair estimation of your valuable items. This quick and easy process can benefit starting entrepreneurs to get business funds immediately to address urgent expenses.

 

4. Online Pawnshops make it safe and convenient for you to get cash

Rather than personally going to the bank for signatories, you can now have the luxury of staying at home and do your financial transactions. As long as you have internet access, you can pawn your items online. Online pawn stores offer a convenient way for them to get your collateral through a free pickup and delivery service. The item you are pawning automatically gets insurance and you don't have to worry about any courier fees. Your item will be delivered safe and sound to your doorstep once you pay off your loan. As for your money, it will be wired straight to your bank or if you want to pick it up from any money remittance center. 

 

5. Pawn store is accepting a wide variety of different items as collateral.

From the ever-popular gold jewelry to musical instruments, you might be surprised on the list of items that a pawn shop can accept. Though you have to consider that not all pawnshop companies accept the same items, you can inquire online if they have a website if you are not sure if they have offered to your item. 

 

There are pawn stores that only accept specific items, like jewelry only or mobile phone only. Find a pawnshop that offers the most flexible mode of payment and highest appraisal, lowest interest rate, and reasonable appraisal value for your items.

 

6. Pawnshops usually offer a short term loan at lesser interest rates.

Many online pawnshops are now offering a low-interest rate as long as you get your item on time. This comes in handy when you know that your funds will arrive at a specific time and you can easily get your item back. 

 

Taking advantage of a short term loan can help you save some cash and headache since you don't have to endure paying the loan for such a long time. This can help you manage your finances more effectively compared to a loan that you have to pay for years or worst, a lifetime!

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