A pawn shop, where a person could sell gold jewelry or other valuables to receive quick cash, has been around for centuries and has recently experienced a resurgence in business due to the weakened economy.

A pawn shop fills a need that a banking system cannot cover for its customers.  Bank loans take time to process and banks typically only lend to people with good credit.  Pawn shop customers usually don’t have time to wait for a loan to be processed because their utility bills are due now and most of the clientele, for one reason or another, do not have good credit.  The offer for quick cash on the spot is the main reason why most people visited pawn shops over other lending institutions.

Since pawn shops have been proven to be recession proof, many people are thinking of opening their own pawn shop.  No person can own or operate a pawn shop without a pawn shop license. In order to receive a pawn shop license, a person must submit a pawn application from the non-depository division of your states Department of Financial Institution.  The application also comes with a fee of between $1500 and $2000.

In order to be a gold buyer in your own pawn shop there are supporting documents you must submit to verify your character and financial standing.  These documents include a credit report, a comprehensive financial statements prepared by a certified public accountant, a statement showing that your aggregate net worth and liquid assets meet the minimum amount required for your state, a criminal record from the state police, written proof you have received the required minimum number of years financial related experience and reference letters from financial institutions you have been dealing with.

Once all the paperwork has been turned in, it is up to the Department of Financial Institution to decide if you are eligible to become a pawn broker.  If you are approved to become a pawn broker and open your own pawn shop, you must adhere to all the laws set forth by your state or your license will be revoked.