Pawn shops, also known as pawnshops or mortgage shops, are a platform for financing turnover by handling pawn mortgages, such as pawn *** or some other famous products, but now there are also many consignment shops that are promoting under the sign of pawn. So, what is the difference between a consignment shop and a pawn shop?Which platform is better?
First of all, there is an essential difference between a consignment shop and a pawn shop in law. The consignment bank is the owner of the goods entrusts the consignment bank to sell their own items on their behalf, and the consignment bank can only charge a certain percentage of the fee after the goods are sold. The pawnshop refers to the pawnshop's behavior of mortgaging movable property and property rights as pawn in the pawnshop, obtaining pawn money, paying a certain interest fee within the agreed period, and redeeming the pawn, which is a financial platform for financing.
Difference Between Consignment Shop and Pawn Shop:
1.The nature of the two platforms is different. The consignment bank is engaged in the storage and sale of used goods and small items, which is a general business behaviorPawnshops are business activities based on mortgage financing, and they belong to special financial enterprises.
2.The two have different ways of making money. The consignment bank charges a certain percentage of the handling fee after the consignment of the goods as a means of profitPawnshops make a profit by issuing borrowing facilities and charging interest charges.
3.Registration sizes and differences. The registered capital of the consignment bank generally ranges from tens of thousands of yuan to more than 100,000 yuan, the scale is small, and no examination and approval is requiredThe minimum registered capital of the pawnshop is 3 million yuan, which is a special financial industry controlled by the state, with a special competent department, which needs to be approved by the competent department and the public security special industry department before its establishment, and can only be registered and opened with the industrial and commercial department after obtaining the business license.
To sum up, there is an essential difference between a pawnshop and a consignment shop. Which platform is better depends on the pawn business you choose.