You Don't Have to be Desperate to Pawn

Pawning has been around for centuries and is one of the longest-serving business models around. You could say that it’s a natural offshoot of the barter system that served as man’s means of getting what he needed. With such a natural evolution, it’s funny when you realize that it gets such a bad rap these days. Many people see it as a desperate, “last chance” solution that they hide from the people who care about them. But you don’t have to be desperate to pawn. There are many reasons why it’s a viable means to raise money for other cool things like upgrades or even investments. PawnHero takes a look at those reasons.

There’s historical precedence.

Queen Isabella was arguably one of Spain’s most prolific queens. Her marriage to Ferdinand would propel Spain into superpower status in their era and one particular victory depended much on pawning! It was during a war against the Granadan Moors that saw Isabella need to resort to pawning off the crown jewels (including a favorite necklace!) to keep the war effort going. It wasn’t even a matter of desperation, but rather preparation. Pawning simply was the fastest avenue to raise funds at that moment without losing the (obviously) valued crown jewels forever.

So strong was the impact and effectiveness of pawning, that when Christopher Columbus was set on his voyage in 1492, she proclaimed that she was willing to pawn again to fund the venture. She didn’t have to in this case, but it was quite the vote of confidence from the Castillan queen! And there’s the first reason why pawning is a viable option even when not desperate: it’s actually just a pretty quick way to raise cash. Maybe you’ll never need to raise cash to fund a war, but you could certainly take the same option to set out on a business venture.

There’s a sense of fairness and protection.

Anyone who’s pulled out a loan from a bank, lending institution, or individual will tell you that it not only takes a long time, but if you fail to pay on time, you could drown in compounded interest and be harassed by collection agencies every single day. And, you know what? That makes sense. However, “victimized” or “harassed” you might feel, remember that these lender all need to make money themselves. With usually no collateral on their loan, every day you don’t pay is a day that they lose money or struggle financially themselves.

Because pawnshops hold an item of yours against your loan, they’re far more chill about things. It’s elegantly simple, really. You don’t pay back, they sell your item to cover your loan. This kind of security on the part of both parties means that pawnshops can be a bit kinder when it comes to interest rates, especially for pawnshops that are wholly online. Online pawnshops don’t pay much overhead because there isn’t a store to maintain, bills to pay, or store employees to tend to. This means they can “pass on” the savings in terms of lower interest rates. And there’s the second reason: The right pawnshops will be able to provide a comfortable interest rate and security knowing no one is going to grill you if circumstances arise that make it hard to pay your loan back.

At PawnHero, you get both those benefits rolled into one. With a completely online way of doing things, you enjoy convenience when taking out a loan with us. Because we accept almost anything, you can find many things around the house that make perfect collateral no matter what your needs. We also boast one of the lower interest rates out there at 2.99% without any hidden charges to worry about. So, a little short on cash for that gadget or wardrobe upgrade? Do you need just that little extra capital to start your business dreams? Pawn now at PawnHero. It’s an easy way to get money you need and you can still get your item back when finances are easier to come by down the road. Everybody wins, really.