A pawnshop is a type of business that is distinguished by its specifics and an entrepreneur needs to be well versed in the activities of such establishments for successful work. During a crisis, people often turn to a pawnshop to get the funds necessary for life or pay off loans and debts.

Therefore, the turnover of pawnshops is increasing, at the same time the number of opening establishments is growing. According to statistics, up to 200 such organizations are registered annually in Russia alone. How to open your own pawnshop from scratch? The answer is in this article!

A pawnshop is an institution that issues a loan to the public secured by the client's valuable property for a certain period. The interest rate for the use of cash by clients is set independently by the pawnshop (in Russia it is forbidden to exceed 25%).

The advantages of opening a pawnshop are availability and high profitability. It is impossible to answer unequivocally whether it is profitable to open a pawnshop. This is influenced by a number of factors:

• chosen location for the pawnshop;
• the amount of the rent;
• advertising effectiveness, etc.

A pawnshop located in a busy, high-traffic area (next to hypermarkets, shops, shopping centers) can expect to be more successful, although this is not yet a guarantee of a stable income.

The room in the center has disadvantages:

• high rent;
• more competition;
• when deciding to pawn a thing, a person tries to find a pawnshop not far from home.

It is necessary to determine the type of activity for yourself and find out how relevant the services offered are. Before organizing a pawnshop, you should study the necessary costs, take into account the risks and the amount of possible income. Drawing up a business plan with preliminary calculations will allow you to estimate the amount of investment and their payback period.

The greatest liquidity is represented by jewelry, but customers are more likely to pawn furs and household appliances. Storage of clothes is associated with certain difficulties, and household appliances become obsolete quickly, their value is lost.

Choosing a pawn shop

Not always a premise located in the city center brings more profit than one located in a "sleeping" area. It is recommended to opt for a pawnshop on the first or basement floor (the entrance from the yard is not good).

The room (area from 40 m2) must meet the requirements of the sanitary-epidemiological and fire service.

It should be noted that a pawnshop that issues loans secured by antiques or equipment requires a separate room where things will be stored. A car pawnshop needs a parking lot and, as a result, the cost of renting it will increase.

Before opening a pawnshop, you should prepare the following documents:

• cash book;
• job descriptions;
• forms of employment contracts;
• price order for gold;
• an order for the size of rates in a pawnshop.​

Additionally, an amount (10 million rubles) is needed to provide loans to customers. Monthly expenses will be:

The worse the economic situation, the more in demand the services of pawnshops become. So, now the pawnshop is a profitable business. In the article, we will consider how to open a pawnshop from scratch, what documents are needed for this and how much money is required.

How to open a pawnshop from scratch

By law, a pawnshop is a credit institution that issues loans secured by movable property. Often pawnshops have a specialization - for example, they only accept jewelry or cars, but there are also general pawnshops. That's why first step when starting a business - conducting market analysis and choosing a niche in demand in your city.

step two- calculation of expenses. They need to invest in:

• Registration
• Equipment
• Monthly expenses
• Opening

Based on monthly expenses calculate interest rate loans that you will issue secured by property.

Step Three - determine the location of the pawnshop. A win-win option is a busy street or a popular shopping mall. However, a pawnshop can also successfully operate in a densely populated residential area - it is important to be accessible and visible.

Step Four - come up with a memorable name and attractive design, order a bright sign.

Step five - register a legal entity at the tax office.

Keep in mind that the name of the legal entity must contain the word "pawnshop", and the charter must spell out the activities of the organization (loans, storage of valuables, consulting services).

Step Six and the most difficult when opening a pawnshop from scratch - obtaining permits, licenses and certificates. You need to register with the Federal Financial Monitoring Service and the State Assay Supervision Inspectorate of the Russian State Assay Office. You will also need title documents for the premises (lease or sale agreement) and a sanitary and epidemiological conclusion with a list of types of services performed/rendered. In addition, you are obliged to insure the things accepted as collateral in favor of the pledgers.

According to the Federal Law of August 8, 2001 No. 128-FZ "On Licensing Certain Types of Activities", licensing of the activities of pawnshops is not provided.

step seven - recruitment. The success of your business depends on the qualifications of your employees. If an employee gives money for fake jewelry, problems cannot be avoided.

How much does it cost to open a pawn shop

Calculating the cost of opening a pawnshop is difficult. The amount of investment in this business depends primarily on the type of organization: for example, opening a car pawnshop will cost you the most. On average, the cost of opening a pawnshop in Russia is 1-1.5 million rubles.

You will have to spend a significant amount on rent / purchase of premises, which will still need to be equipped. You will need:

• Sheathe the room with a grate made of special metal wire
• Install alarm, panic button and video surveillance
• Hang storage shelving

You also need to buy:

• Several safes
• Computer
• Printer
• Cash machine
• Jewelry electronic scales
• Assay needles
• Touchstone
• Assay acids
• Reagent tubes
• Ringmeters
• Lamps with white, ultraviolet and other types of lighting
• Detectors for precious metals and stones
• Stationery
• office furniture

In addition, mandatory payments will “eat up” most of the costs:

• Employee salary
• Insurance
• Accounting
• Rent

Opening a pawnshop by law: requirements in 2017

The activities of pawnshops in Russia are regulated by many laws and regulations:

• No. 315-FZ of December 1, 2007 "On pawnshops"
• No. 197-FZ of July 19, 2007 "On Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law "On Pawnshops""
• No. 375-FZ of December 21, 2013 "On Amendments to Certain Legislative Acts of the Russian Federation"
• No. 363-FZ dated December 21, 2013 "On Amendments to Certain Legislative Acts of the Russian Federation and Recognizing as Invalid Certain Provisions of Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law "On Consumer Credit (Loan)""
• No. 353-FZ dated December 21, 2013 "On consumer credit (loan)"
• No. 151-FZ dated July 02, 2010 "On microfinance activities and microfinance organizations"
• No. 315-FZ of December 1, 2007 "On Self-Regulatory Organizations"

Taxation of pawnshops

According to Art. 346.12 of the Tax Code of the Russian Federation, pawnshops are not entitled to apply the simplified taxation system.

In addition, paragraph 5 of paragraph 3 of Art. 149 of the Tax Code of the Russian Federation establishes: income received in the form of interest on loans is not subject to VAT, and storage activities are subject to VAT. Therefore, the organization needs to maintain separate accounting records.

Reporting of pawnshops

Like all enterprises conducting commercial activities, pawnshops are required to report on their activities to the state:

• To the Central Bank of the Russian Federation: once a quarter - on activities, monthly - on cash transactions, once a year - on the personal composition of the governing bodies
• To Rosfinmonitoring: quarterly - FES-04 report, once a year - internal report of the CEO

How to open a pawnshop with less risk

If you are not ready to spend the time and effort to open a pawnshop from scratch, consider buying a ready-made business or franchise.

By buying an operating pawnshop, you save time and money on obtaining permits, finding premises, hiring employees, concluding partnership agreements. This option is perfect for entrepreneurs with little experience - you do not have to build a company from scratch.

If you are not ready to run a business on your own, want to work under a well-known brand and get support, buy a franchise. It is in the interests of the franchisor to teach you all the business tricks and contribute to your success, which is especially important in the absence of entrepreneurial experience.

A pawnshop is a profitable business that requires significant investments at the opening stage. But with proper management, these costs will quickly pay off, and the profit will not keep you waiting.

Step-by-step instructions from which you will learn everything you need to open a pawnshop in Russia and how much it will cost. The material takes into account legislative, tax and organizational subtleties.

The procedure for opening a pawnshop is significantly different from opening a regular company. The difficulty lies in the fact that it is necessary to comply with all the requirements of the law in this area, and in case of absence (by mistake or ignorance), huge fines will have to be paid. In order to avoid this, we will analyze the intricacies of the requirements for pawnshops and study the procedure for opening and organizing it from scratch.

Stage 1: Regulatory documents

Consider in the form of step-by-step instructions what you need to open your own pawnshop. The initial stage of planning the opening of a pawnshop is the study of legislative acts regulating the work of a pawnshop organization. We must collect all the legal acts of our future activities, because issues of legal regulation will have to be faced in practice.

The main legislative act is the federal law Federal Law of July 19, 2007 N 196-FZ "On pawnshops".

Main points of the law:

• A pawnshop is a specialized commercial organization, the main activity of which is the issuance of loans to the population on security, as well as the storage of things.
• The pawnshop is forbidden to engage in any other activities, except for the provision of loans (up to 1 year) and storage of things.
• All things pledged by borrowers, the pawnshop is obliged to insure for the entire term of the loan.
• When transferring things as collateral or for storage, the pawnshop is obliged to evaluate these things.
• When granting a loan, a pawnshop is obliged to conclude a loan agreement, which must contain the essential points of the transaction (amount, rate, repayment period, name and valuation of the pledged thing).
• When issuing a loan, the borrower is given 1 copy of the pledge ticket, the second copy remains in the pawnshop.
• The borrower undertakes to return the received loan, as well as interest on it according to the period specified in the agreement. If the borrower has overdue the loan repayment period by more than 1 month, then the pawnshop has the right to sell the pledged property.
• Realization of the pledged things takes place by way of its sale, if the price of the thing exceeds 30,000 rubles, its realization takes place by holding public auctions in the form of an open auction.

An important point: According to the law "On Pawnshops", pawnshops can only issue loans, therefore, in order to sell property for which a pledge case has occurred, it is necessary to separate a separate legal entity that will be engaged in the retail trade in jewelry.

The next legislative act regulating the activities of the pawnshop is the order of RosFinMonitoring No. 203 dated August 03, 2010 "On approval of the Regulations on the requirements for the training and education of personnel engaged in transactions with cash or other property, in order to counteract the legalization (laundering) of proceeds from crime. way, and the financing of terrorism."

This provision regulates the following issues:

• Requirements for the training and education of personnel in transactions with cash and other property.
• Forms, frequency and terms of personnel training
• Organization of accounting for training

If the conditions of order No. 203 of August 03, 2010 are not met, the organization may be held administratively liable, and in case of systematic violations, it may be closed.

Due to the fact that the activity of a pawnshop is connected with the circulation of precious metals and stones, it is subject to the Order of the Ministry of Finance of the Russian Federation No. them and keeping records of their production, use and circulation".

An important point: This order applies to pawnshops that issue loans secured by precious metals and stones.

Features of taxation

Taxation of pawnshop activities, there are certain subtleties. According to the Tax Code of the Russian Federation, the activities of pawnshops fall under the general taxation regime. At the same time, income received in the form of interest on loans is not subject to VAT (according to subparagraph 5 of paragraph 3 of Article 149 of the Tax Code of the Russian Federation), and storage activities are subject to VAT, therefore, the organization must maintain separate accounting records.

Stage 2: Calculation of the economy

One of the main stages of planning the opening of a pawnshop is the calculation of its effectiveness. At this stage it is necessary:

1. Understand what capital investment is required to open a pawnshop.
2. What will be the cost of the pawnshop
3. How many loans should be issued per month to cover all costs and earn a profit.

For example, let's analyze the economic calculation of opening a pawnshop

All calculations are made for a pawnshop located in Moscow

On average, for the equipment of one pawnshop with an area of ​​40 m 2, investments in the amount of 500 thousand rubles are required. Expenses consist of the following items: renovation of the premises, purchase of furniture and office equipment, special equipment, safe, purchase of accounting programs, printing of promotional materials, a set of reagents and tools for the appraiser, and so on.

Also, to open a pawnshop, you must have funds to issue loans to the public.

The cost of opening a pawnshop in our example amounted to 10,500,000 rubles (0.5 million rubles capital costs and 10 million rubles funds for issuing loans).

Expenses

• Rent: 3 500 rubles. for 1 sq. m. - 140,000 rubles (for 50 sq.m.)
• Salary: 5 people (1 director, 4 appraisers, work in shifts two through two) - 300,000 rubles (including taxes).
• Security: - 160,000 rubles
• Other (advertising, administrative, accounting, insurance) - 200,000 rubles.
• Total expenses: 800,000 rubles.

After analyzing the rates in operating pawnshops, the average rate of a secured loan is 10%. Based on this rate and fixed costs, the break-even point of the pawnshop is 8.8 million rubles. This means that it is necessary to issue loans for 8.8 million rubles in order to cover all expenses and break even.

Therefore, in order for a pawnshop to make a profit, it is necessary to issue loans in the amount of more than 8.8 million rubles per month. Use the method of calculating the working capital of a pawnshop for independent calculation under specific conditions.

In practice, in order for a pawnshop to work in profit, it is necessary that 40-50 people visit the pawnshop per day (the average loan amount is 5-10 thousand rubles). On average, a pawnshop needs 3 to 6 months to reach the breakeven point. Terms depend on the correct choice of the location of the point, the presence of competitors, advertising.

The payback period of a pawnshop based on the volume of loans issued:

As can be seen from the table, the larger the average monthly volume of loans, the faster the payback. In practice, the payback period of a pawnshop is 5-7 years.

Stage 3: Registration procedures

If you are satisfied with the economic calculation of the activities of the pawnshop, and are not repulsed by the prospect of getting bogged down in the study of various Talmuds regulating the activities of the pawnshop organization, then you can safely proceed to registering the pawnshop.

Specific steps to open

1. Register activities with the Tax Office. The optimal organizational form for a pawnshop is a "Limited Liability Company". You can find the list of documents required for registering an LLC on the website nalog.ru.

   As the type of activity, you must select the following:

   provision by pawnshops of short-term loans secured by movable property (OKVED 65.22.6.)

   provision of services for the storage of valuables (OKVED 67.13.5.);

   provision of consulting and information services (OKVED 74.14 Consulting on business and enterprise management)

2. Register the pawnshop with the Federal Financial Monitoring Service. Within 30 days from the date of state registration, the organization is obliged to register with RosFinMonitoring. You can familiarize yourself with the list of documents required for registering a company on the official website.
3. Get registered with the Assay Office. According to the Order of the Ministry of Finance of the Russian Federation No. 68n dated August 29, 2001, organizations involved in the circulation of precious metals and stones are required to register with the Assay Office. You can find the list of documents required for special registration on the official website of the Assay Office.

   Important point: Without registration with RosFinMonitoring and the Assay Office, a pawnshop does not have the right to issue loans.

4. Choose an insurance company and insure in favor of the pledgors the things taken as collateral. According to the law “On Pawnshops”, in order to carry out activities for issuing loans secured, it is necessary to insure the property offered as a pledge in favor of the mortgagor, but at the expense of one’s own funds. Coercion to insurance at the expense of the pledgor is prohibited. An important point: In order not to insure each item separately, it would be optimal to insure for a certain amount, which will allow you to cover all your obligations to the pledgers.

Stage 4: Choosing a location

Choosing the right pawnshop location will determine whether your pawnshop will be profitable and how quickly it will pay off. The premises for the pawnshop must meet the following criteria:

• The room should be located on the first line of houses (first or basement floor, it is allowed to place a pawnshop in the basement, if there is a convenient staircase)
• The premises must be located in a place with high human traffic (for profitable work, a pawnshop should have 40-50 visitors a day)
• The pawnshop must be located in a densely populated residential area ("sleeping area").
• The premises must comply with fire safety rules and the requirements of the SES.

The actual launch, the beginning of the work of the pawnshop

Now you know the main stages of opening a pawnshop and for its real launch it remains:

1. Hire staff (the number depends on the area of ​​the pawnshop and on the number of services provided and the types of collateral accepted)
2. Decide on the work schedule (It is optimal for the pawnshop to work daily, from 10:00 to 23:00)
3. Develop internal regulations for the operation of a pawnshop (internal regulations, job descriptions for employees, employment contracts, loan agreement forms, and so on).
4. Conclude agreements for the protection of the object with a security company (It is not advisable to keep your own security guard on staff, it is optimal to hire a specialized security company to provide security services).
5. Purchase software for pawnshop operation. (Purchasing software significantly optimizes the work of a pawnshop, speeds up the terms of processing a loan agreement, helps track repayment periods, and much more).

After completing all the steps, you just have to cut the red ribbon and start a business!!!

The pawnshop business is considered to be a profitable business all over the world. The profitability of such a business reaches 40 percent. And this is a very high figure. The profitability of the pawnshop remains high and tends to grow when the banking system in the country weakens, production is reduced. And the most interesting thing is that the country has a developed middle class. It is he who is the main consumer of pawnshop services.

Pawn business: theory and practice

If you have a desire and a penchant for the pawn business, then you should do this business. It is very difficult to burn out at a pawnshop.

So, you've decided to open a pawnshop? What do we have to do? Before opening your own business in the pawnshop business, you need to study the market in which you will have to work, carefully read the legislation governing the activities of pawnshops and the relevant by-laws. This includes regulatory documents, resolutions of the government of the Russian Federation and instructions, rules and requirements.

Is it profitable to open a pawnshop?

Engaging in the pawnshop business is a profitable business, so the number of companies and individuals involved in it is constantly increasing. According to information received from government sources, the number of pawnshops in our country is increasing annually by at least 150 companies. This year is no exception. Therefore, when studying the market, you need to find out the number of companies that are engaged in the pawn business in your city. To what extent do they meet the needs of the population in such services?

You need to find a niche for yourself, that is, a direction that you will be engaged in. Whether you will specialize in household appliances or vehicles, whether you will deal exclusively with jewelry and gold or real estate - all this must be determined even before opening a pawnshop. It should be borne in mind that a pawnshop is, in fact, a small bank that lends to the population for a short, most often, period. But unlike a bank, this credit institution deals only with loans and only on the security of movable or immovable property.

The pawnshop works only with the population. Therefore, in order not to go bankrupt and have a constant profit, the pledged property must be liquid. Simply put, it should be such that it can be implemented quickly. When choosing a specialization, this point must be taken into account.

After you have studied the market, decided on a specialization, you can start directly opening a pawnshop.

Opening a pawnshop and the Law

Above we have already discussed the legislation regulating the activities of pawnshops. If before making a decision to open your own pawnshop business, you could only get acquainted with it, then after a positive decision is made, the legislation must be studied in detail.

Knowledge of the laws and strict observance of them is the key to success in your chosen field. By the way, in the pawnshop business, deviation from the requirements of the law is punishable by a fine. And the fines are huge.

The basis of the activity of the pawnshop is Federal Law "On Pawnshops". Its number is 196. It entered into force on July 19, 2007. This law defines the status of a pawnshop as a commercial organization whose activities are of a specific nature. The law allows the issuance of short-term loans secured by personal property. The term of the loan is up to 1 year. During this period, the pledged property must be kept by the creditor. It is prohibited to sell the pledged property before the expiration of the term.

The mortgaged property must be appraised before the loan is issued. A loan agreement is required. This agreement specifies the terms of validity, property valuation, the rate at which the loan is issued, the amount disbursed.

The pledge ticket is made in two copies. The first is given to the borrower, the second remains with the lender.

The pawnshop has the right to sell the pledged property only if the delay has exceeded one month. In this case, the pledged property goes on open sale. But if its value exceeds the amount established by law (the law specifies an amount equal to 30,000 rubles), then the property is sold at auction, that is, at an open auction.

Pawnshops themselves are prohibited from trading. The pledge either goes to an open trading network for sale, or you will have to open an additional company, the task of which will be the sale of the pledged property.

You will also have to be guided in your activities by the order of a federal organization called "RosFinMonitoring". This order was issued on 03.08. 2010 at number 203. It has a long name, so we will not give it in full, we will only say that this order approves the Regulation, which determines the requirements for the activities of pawnshops. This Regulation sets out the requirements for education and training of personnel, for operations with property and funds, how to counteract money laundering, financing of extremist organizations and terrorist groups. The regulation determines the terms of training for pawnshop employees, how and what they should be trained, as well as the frequency of retraining of personnel.

This order has the force of law. Failure to comply with its requirements can lead, at a minimum, to administrative liability, and malicious evasion of requirements can lead to the closure of the company. If a pawnshop is engaged in issuing loans secured by jewelry, then its activities are subject to Order of the Ministry of Finance of the Russian Federation at number 68. It was published in 2001 on August 29th. This order approves the Instruction that determines the procedure, accounting and reporting when working with precious metals and precious stones.

These are the main legislative documents, the requirements of which need to be guided by the pawnshop in its activities.

The legislation of the Russian Federation determines that taxes are collected from pawnshops on a general basis. At the same time, the Tax Code determines in Article No. 149 that VAT is not charged on interest received by a pawnshop. It is levied on the storage of the mortgaged property. It follows that the accounting report will have to be kept separately for both the storage of collateral and the receipt of interest on the loan.

Opening a pawnshop: step by step instructions

Choosing a place, registering a pawnshop

Having studied the legislative acts, we proceed to the registration of registration documents. But first, in the step-by-step instructions “How to open a pawnshop?”, It seems to us that it is better to decide on the place where the pawnshop will be located. It is advisable to choose a place where it is always crowded. For example, on a busy street or in a public public institution. You need to come up with a name and advertising for your company. Advertising should be bright, but discreet, attractive.

It is best to register a pawnshop, as Russian practice shows, as a limited liability company. The necessary list of documents can always be obtained from the Tax Inspectorate. You can simply download them on the Internet at the appropriate site.

A license to operate a pawnshop is not issued.

After registering with the Tax Service, it is mandatory to register with the nearest branch of RosFinMonitoring. This must be done within a month after receiving state registration. If you intend to work with jewelry, you will have to get up and on a special account. Such registration is put in the Assay Chamber of the Russian Federation or in the branches of the Chamber. After registration, you will be issued a certificate of assay supervision. Then you will have to check your laboratory scales. Further checks of the scales are carried out in the prescribed manner - once a year.

What do you need to open a pawnshop?

Registration is completed, the place is selected, now you can start hiring staff and determine what is needed to open a pawnshop. Let us first give a list of equipment that will be needed for the work of a pawnshop, which has a broad specialization.

You will definitely need commercial equipment: showcases, racks that will be located on the trading floor, warehouse racks, racks (they are also counters), a cash drawer (several units are possible), a safe, an information board.

You will need office equipment, including a computer with an Internet connection. To ensure the security of the object, a metal door will have to be installed. The door should have a window and a bell. Naturally, the pawnshop must be equipped with a security system.

The pawnshop should also have special equipment for checking the property provided as collateral. For some types of property, it is better to use the services of third parties, for example, to check the performance and assess the value of the car. But for checking and evaluating jewelry, the equipment should be at hand. The set of such equipment includes laboratory scales, reagents and tools for checking jewelry.

Personnel for work in a pawnshop are selected depending on the type of activity, schedule and amount of work. But the staff always includes a director, an accountant, security workers, appraisers (they are also managers and sellers). You can select employees yourself, or you can contact the employment office or a recruitment agency.

Pawnshops are distributed all over the world and bring considerable profit to their owners. Pawnshop clients are middle-class people. In our country, pawnshops located in the city center are in great demand, which should be taken into account when looking for premises for a pawnshop.

The pawn shop makes a profit all year round, but spring and autumn are considered the most profitable. As a rule, this is due to the fact that most people prepare for holidays in the spring, and in the fall they need money after returning from vacation.
In this article, we will tell you what is needed to open a pawnshop, how profitable this type of business is, and what risks a businessman who wants to open a pawnshop may face.

Opening a pawnshop, like any other, needs start-up investments. In addition to the necessary equipment, rent of premises and salaries of employees, as a rule, no additional costs will have to be incurred.

In order to open a pawnshop, you need the following:

• rent a room and take care of its proper protection;
• install video surveillance;
• install an alarm system;
• purchase safes, cells and other special furniture.

If you plan to open a universal pawnshop, the optimal area of ​​​​the premises should be about 100m². For a pawnshop specializing only in the acceptance of jewelry, 20 m² will be enough.

Important for the full and uninterrupted operation of the pawnshop is the following:

1. software that will help to provide high-quality and fast customer service;
2. the necessary equipment for assessing and weighing accepted jewelry;
3. the presence of an advertising stand in front of the entrance to the pawnshop, to attract visitors.

Staff

As a rule, a small team consisting of a security guard, an appraiser, an accountant and cashiers work in a pawnshop.

The choice of personnel must be approached with all seriousness. However, the most serious is the selection of candidates for the position of appraiser. The employee holding this position must have good experience and high qualifications in order to distinguish a fake from a real precious metal. The profitability of any pawnshop depends on the work of the appraiser.

Any entrepreneur who wants to open a pawnshop must, first of all, decide on the type of legal board - OJSC, CJSC or LLC. You can first consult with lawyers and even order legal support. Many companies, for a fee, provide services and help with the preparation of the necessary documentation.

So, in order to be able to open a pawnshop and carry out legitimate business activities, you must have the following documents on hand:

1. registration certificate;
2. documents proving ownership of the premises or lease agreement;
3. permission from SES.

The operation procedure of a pawnshop is quite simple and transparent - a person brings and gives a certain value to a pawnshop, for which he receives a part of its value. The assessment is made by the appraiser and announced to the client. Such loans are issued for a fairly short period, often not exceeding one month. At the end of the appointed period, the client brings money, pays a fixed percentage and takes his valuables.

In the event that the client cannot redeem his valuables after the expiration of the appointed period, the loan agreement is extended while maintaining the original conditions. After several renewals, the pawnshop has the right to put the value up for sale.

Practice shows that clients who need money are much more willing to turn to pawnshops than to banks or microfinance organizations. This is understandable, since the money can be received on the same day and there is no need to provide a large number of documents. In addition, pawnshops do not require a guarantor.

Pawnshop owners take less risk when lending money to customers than banks. Having issued the money, the pawnshop leaves certain valuables as collateral - gold, silver and other valuables. Even if the client does not return to fulfill the terms of the contract and return the money, the pawnshop does not lose anything, as it can sell the pawned jewelry and return its money. Therefore, this type of business activity is considered the least risky of all existing today.

Payback pawnshop

Practice shows that the payback period of a pawnshop does not exceed one and a half years. However, the specifics of the work of pawnshops is such that the first six months can be very difficult financially. Most pawnshops do not survive this bar and close after not even a year. Therefore, the most important thing is to stay on the market for at least two years.

If the crisis period is successfully passed and the pawnshop began to make a profit, then its size can reach up to 4 thousand dollars a month. So, a pawnshop is the least risky and rather profitable type of business with a short payback period. It is very profitable to open a pawnshop as an additional business, having an existing one.

Possible risks

As in any activity, there are certain risks in this type of business. Let's define the main categories that you should pay closer attention to.

The first risk is associated with the difficulties of determining the value of the accepted products. In order not to work at a loss, it is necessary to ensure that the state has a qualified and experienced appraiser who can distinguish real jewelry from fakes.

Another risk is related to the origin of the delivered goods. It is almost impossible to make sure whether the client is the owner of the values ​​to be handed over. Therefore, in some cases, law enforcement agencies may seize stolen valuables, which will lead to certain losses.

Good luck to you!

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