What does a Pawnbroker do?

Learn all about Pawnbroker duties, skills and much more. Get expert advice on how to become a Pawnbroker.

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Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 3 min read

A pawnbroker is a person who loans money to people by using personal belongings as collateral.

Pawnbroker job duties include:

  • Greeting customers and assessing their needs
  • Answering questions about merchandise
  • Assisting customers in finding the merchandise they are looking for
  • Ringing up sales on the cash register
  • Handling customer complaints in a professional manner
  • Keeping the sales floor clean and organized
  • Helping to stock shelves and displays
  • Monitoring security cameras
  • Balancing the cash register at the end of the shift

Pawnbroker Job Requirements

There are no formal education requirements for pawnbrokers, although most have at least a high school diploma. Some states require pawnbrokers to be licensed, and many employers prefer candidates who have experience working in the customer service or retail industries. Pawnbrokers must be able to calculate interest and understand financial documents. They also need excellent customer service skills to build relationships with customers and help them find the best loan options.

Pawnbroker Skills

  • Strong communication skills
  • Active listening skills
  • Good people skills
  • Basic math skills
  • Good organizational skills
  • Ability to stay calm under pressure
  • Ability to make quick decisions
  • Ability to assess value of items
  • Good negotiation skills
  • Knowledge of pawnbroking laws and regulations
  • Physical strength and stamina

Related: Top Pawnbroker Skills: Definition and Examples

How to become a Pawnbroker

Pawnbrokers are people who lend money in exchange for personal property. Pawnbrokers typically charge interest of 10% per month, which is high when compared to other forms of lending. However, pawnbroking is a relatively low-risk form of lending, since the pawnbroker can sell the collateral if the borrower does not repay the loan.

To become a pawnbroker, you will need to obtain a license from your state or local government. In some states, you may also need to post a bond. Once you have obtained your license, you will need to find a location for your business. Pawnshops are typically located in high-traffic areas such as near public transportation or in busy shopping districts.

Once you have secured a location, you will need to stock your shop with merchandise. Pawnshops typically accept jewelry, electronics, musical instruments, and other valuable items as collateral. You will also need to purchase a safe to store your merchandise in and insure your shop against theft and damage.

Once your shop is up and running, you will need to market it to potential borrowers. You can do this by placing ads in local newspapers and online, as well as by distributing flyers in high-traffic areas. You should also consider offering discounts or special deals to first-time borrowers to attract new customers.

Related: Pawnbroker Resume Example

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