Pawn shops may be known by most people in film and television dramas or literary works, and their impression of pawn shops is also not good. Nowadays, with the development of social economy, the special industry of pawn is also playing an increasingly important role in the development of social economy. So, what exactly does a pawn shop do now? What are the differences and advantages between pawnshops today and pawnshops in the past and banks now?
1. The difference between pawnshops and pawnshops in the past.
Today's pawnshops are indeed the transformation of pawnshops in ancient times, but today's pawnshops are different and different from the traditional pawnshops of the past. The current pawnshop is a non-bank financial institution approved by the relevant financial regulatory authorities to establish a pawn mortgage, although the pawnshop in the past is to obtain funds by collateral of goods, but now pawnshops have relevant standard requirements in the scope of the pawn mortgage of goods, the interest rate charged.
Second, the difference between pawnshops and banks now.
Compared with banking institutions, pawnshops now have simpler procedures for mortgage financing, faster access to funds, a wider range of mortgage financing, and more flexible amounts of funds, but there is no deposit and withdrawal business of banks.
3. Advantages and disadvantages of pawnshop financing now:
Advantages:1Handle a wide range of business; 2.The procedures are simple and the access to funds is fast; 3.Low personal requirements.
Deficiencies: 1It is only suitable for short-term capital turnover; 2.Interest rates are higher than those of banking institutions; 3.There are certain requirements for pawn items.
Pawnshop is now a short-term capital turnover is more convenient for a financing turnover platform, but it also has both advantages and disadvantages, in the choice of its business or according to their own needs to choose a reasonable consideration.