To get started as a pawnbroker, most people need a license. Most places have this requirement, and those who choose to ignore it face consequences. Aside from licensing, a person interested in this business will typically require a significant amount of start-up capital, a location from which to operate, and some knowledge of how to appraise items offered as collateral for loans. Having some business knowledge or taking some business classes at a local college could also be beneficial.
Many jurisdictions require pawnbrokers to obtain a license. To do so, a person typically fills out an application provided the jurisdiction where he intends to work. He’ll need to provide his full name, address, and date of birth, as well as a tax ID or proof of a business license in some cases. He may also be required to provide information about the business he intends to open, such as the location of the shop and the hours it will be open.
A background investigation is required in many jurisdictions before a person can become a pawnbroker. He may be denied a license if he has a criminal record. Some jurisdictions even allow police officers to object to a pawnbroker’s license being granted to a specific individual. If a person is suspected of criminal activity, for example, police officers may object.
A company may apply for a pawnbroker’s license rather than an individual. In this case, a company representative may be required to provide information such as the company’s name and primary location. He may also be required to provide the addresses of any other company locations. Additionally, anyone involved in the management of the company may be subjected to a background check. Even if some of the managers will not be directly involved in the operation of the pawnbroker’s shop, this requirement may be met.
Aside from a pawnbroker’s license, a person who wants to work as a pawnbroker must also have a suitable location from which to operate. A storefront may be a viable option if it is located in an area with a high volume of foot traffic. In addition, the shop should have enough space for jewelry display cases, as well as shelves and other display arrangements for other items.
Because appraising personal property is such an important part of running a pawn shop, anyone interested in the field can take classes or read books on the subject. This is especially important when dealing with jewelry transactions. Learning the fundamentals of running a business can also help someone who wants to work as a pawnbroker.