Pawnshop

A shop where a pawnbroker operates their business. A store where you can leave possessions to borrow money or buy objects that others have left and are now for sale. a store that lends money in exchange for a valuable thing they can sell if the person leaving it does not pay an agreed amount of money by an agreed time: a pawnshop loan/owner(Cambridge Dictionary). Authorities found the gun was initially sold at a Wylie pawnshop in 2013. Eventually, the bear made its way to a pawnshop, where it was bought by country music star Waylon Jennings. Augustana then allegedly drove to a pawnshop in Opa-Locka, Fla., about 10 miles northwest of downtown Miami, and made a $150 deposit on an AK-47(Dictionary). Pawnshops make money by providing personal loans, reselling retail items, and offering auxiliary services, such as money transfers or cellphone activation. Earning interest on loans and profits on retail sales are the principal income sources for the standard business model for a pawnshop. Pawnshops typically aim to generate overall net profit margins of at least(Investopedia).

Sources:

Pawnshop. Cambridge Dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/pawnshop?q=Pawnshop

What Is a Liquidation Preference: Definition in Business, How They Work, and Types. Pawnshop. Retrieved from: https://www.investopedia.com/articles/personal-finance/112415/how-pawnshops-make-money.asp