Opening A Pawn Shop

Pawnbroking is a 3,000-year-old industry that continues to thrive in communities nationwide. The NPA recognizes, serves and supports small business owners who do good work for good people in this industry. We encourage entrepreneurship in the pawn industry and work to support those individuals interested in pawn as a profession. Get your free copy of Opening a Pawn Shop below. 


Should I Be A Pawnbroker?

Millions of Americans depend on pawn for legitimate short-term credit needs and a desired non-recourse lending option. A regulated industry since 1892, pawn shops today are neighborhood financial institutions annually serving more than 30 million consumers nationwide.  

Today’s pawn stores are attractive, welcoming places to do business. They are often family-owned and operated and offer superb customer service. Every day, pawnbrokers help families through challenging economic times by providing non-recourse, small dollar, short-term loans when they have nowhere else to turn. 

Pawn customers represent the working families of America who periodically experience an unexpected need for short-term funds. Pawn loans keep the electricity on, the rent paid, and cars running with full tanks of gas by providing a safety-net to over 30 million unbanked or underbanked Americans. Independent pawnbrokers also provide services to America’s small businesses. Becoming a pawnbroker is a personal choice that should be made by well-informed entrepreneurs.  


We have LOTS more detailed info to share!
Use the form below to request a free copy of
“Opening a Pawnshop.”


Location, Location, Location

As a rule of thumb, over 80% of a pawn shop loan base will come from within an 8-mile radius of the location. As with any potential business you anticipate opening, do your homework! Evaluate numbers of potential consumers in your proposed location and know what options are available from other pawn retailers. Just like any business, there will be competition in this industry as well.  

Know the Regulations

Independent pawnbrokers comply with local, state, and federal regulations and laws, and in most jurisdictions, provide local law enforcement with data on all transactions on a daily basis. Licensed, regulated independent pawnbrokers offer consumer credit secured by personal property. Pawn loans do not require a credit check and never negatively affect a customer’s credit. You will want to remain informed of both state and federal regulations in your area.  

Utilize Advanced Technology

Taking the time to set up updated systems and technology for a pawnshop operation is not only necessary but will ensure your success. Additional systems should be set up for every procedure that takes place in your store.  

Learn as Much as You Can

Where will you lean the most about how pawn works? In a pawn store! Consider taking a job at a pawn store to gain perspective before you go out on your own. Be sure to appropriately research the pawn business and speak with as many pawn professionals as you can.  

Subscribe to This Week in Pawn

The most important news in the pawn industry, delivered to your inbox every Thursday.