Operating a small business can be challenging, especially if it’s a new one, as well as not having enough start-up funds.
Obtaining a loan from a bank and other traditional sources will help but can also be difficult to do so if you don’t have the necessary papers.
In this case, you may consider getting a loan online from a pawn shop instead. Here are six reasons why getting one from an online pawn shop is a great way to fund your business.
1. Pawn shops don’t check your credit history.
For people who do not have a credit history yet or have a bad credit record, getting a loan from traditional sources will be almost next to impossible.
With pawn shops, no credit check is conducted, which means that anyone can get a loan to start or maintain a small business. All you need is a valuable item that you can pawn that would serve as collateral for the loan.
2. They don’t require a lot of documentation.
Traditional sources of loans typically ask customers to provide documents, such as a Certificate of Employment to serve as proof of a job or income.
For business loans, business documents such as registration papers and financial documents are required as well. Then again, this is difficult to accomplish if you’re only about to start or if your business is still new.
With pawn shops, you don’t have to bother providing these as they are not required. Documentation will only be helpful when you need to provide proof of the value of the item you are pawning.
3. Application is easy and quick.
Traditional loan sources usually take weeks to approve a loan.With online pawn shops, however, you can get a loan within a day. All you have to do is to apply online so that the pawn shop can give you a fair estimate of your item.
As soon as you accept the offer, the pawn shop will deposit your cash into your account on the same day. This is especially beneficial for small business that need money immediately to take care of certain crucial expenses.
4. Pawning online is safer and more convenient.
Instead of going to the bank or physical pawn shops, now, you have the option of just staying at home or your place of business and do everything online.
Online pawnshops these days offer to schedule a free and fully insured pick up of the item from your house. They ship it back to you for free as well, as soon as your loan is fully paid.
Your cash is also deposited straight to your bank account, so you don’t need to worry about bringing a large amount of money with you.
5. Pawn shops accept a variety of items for pawning.
Pawn shops take a wide array of valuables as collateral for your loan. Usual items include antiques, jewelry, watches, electronics, gadgets, and even musical instruments. Some pawn shops, however, only specialize in specific items.
The key is to find a pawn shop that will give the most for your item and provide flexible payment terms that will best fit your needs.
6. They offer short term cash at reduced rates.
Traditional loans can often be very expensive because of the high-interest rates. Some online pawn shops, on the other hand, offer lower interest rates.
There are those that offer as low as only 2.99% with flexible payment terms. With this, your business will be able to save a lot with online pawn loans compared to traditional loans.
Small business owners have to be smart about how they source and spend their money if they want their business to succeed.
If you must get a loan for your business, getting one from an online pawn shop may be the smartest way to go.
About the Author
“Carol Soriano is a consultant for PawnHero.ph, the very first online pawnshop in the Philippines. A writer at heart and a social media enthusiast, she finds personal finance, investment and money matters interesting topics to write about.”