A pawnshop is a store or form of business that lends money to consumers who carry valuable to items to be pawned, and these items are referred to as "collateral".  The collateral can only be retrieved after the loaned money and interest have been repaid. In the instance that the borrower fails to repay the pawnbroker's loan and interest within the agreed-upon time frame, the pawnbroker can now sell the valued object to another buyer to recoup the money they loaned. 

Pawnshops also provide micro-lending facilities, which are a critical source of credit in many developed countries. This is especially true here in Asia. These pawnshops further fill the void created by financial systems by offering loans to low-income families and minimum wage earners that might not have been available otherwise. they can also effectively boost the credit market competition by offering an alternate source of credit to those who have been denied bank loans. 

People go to pawnshops for three reasons: 

1. They need cash in order to secure a swift loan. 
2. They must pawn personal possessions such as jewelry, electronics, and other precious objects.
3. They try to purchase unredeemed objects that are up for sale. 

Three types of people who usually transact at pawnshops:

1. People who need quick cash and are willing to pawn precious items as collateral.
2. People who are trading their used items. 
3. People who buy new or used merchandise. 

This is the procedure of the pawnshop when lending money to customers:

1. The pawning starts when you bring something you own and give it to the pawnbroker as a collateral for your loan. 
2. The pawnbroker lends you money in exchange for the collateral.
3. You get your equity after you have repaid your loan and interest. 
4. If you fail to repay the loan, the pawnbroker will hold the collateral. 

Commonly pawned items at a pawnshop:

• Jewelry
  Jewelry is an excellent investment piece in addition to being a representation of a person's status. 
• Designer bags
  The value of these bags increases over time, and when pawned, the cash collected may exceed the five-digit figure. 
• Watches
  Precious metals or jewels are used in creating luxury watches, and most of these timepieces are uncommon and expensive. 
• Electronics and Gadgets
  Any gadget or piece of electronics has a high chance of getting pawned. The amount that can be received will be determined by the current value of your belongings. The overall condition also affects the maximum value. 
• Musical Instruments
  Make sure that the musical instruments are in playable condition. The value of the objects can be reduced if they have scratches or evidence of wear and tear. 

Continue reading about Cebuana Pawnshops for more information.