The other day, I was talking to li jiuan about the pawn shop business in Singapore. I notice that Maxi-Cash a chain pawn shop operator positions itself different from others. It is uncommon to see advertisements on pawn shop in Singapore media, but Maxi-cash does it different, they have been publicizing heavily on TV and having mediacrop artiste endorsing for them.
Then we were discussing, how do pawn shop actually work? is it a legal loanshark? does it work like a bank?
Maybe it really works almost like a bank –
For example: A pawn shop
A customer goes to a pawn shop with his jewelery
Pawn it > collect cash (less than market value)
if the customer return with cash within the redemption date (usually 3 months) to redeem his jewelery then he just need to pay some interest on top of his principle
otherwise if it passed the redemption period the pawn shop is free to auction off the item.
In a bank, it works the same
A customer used his house as mortgage – takes up a loan
if he pays up on time (principle and interest) , he gets back his deed otherwise he loses his home.
Then a random thought came, maybe we can set up a pawnshop next time > since it work almost like a bank and setting up a bank requires huge capital and many many regulations. maybe we can set up a smaller amount to have a pawn shop? I was thinking why not we do it online?
Well this is what I found what I did a search on google.
Can you believe it US1.5M for an online pawnshop? > I wonder if you proposed an online pawn shop to SPRING, would they fund it for SGD50k?
Well anyway, just to note “Internet Pawn was established in 2009 by people who’ve actually owned and operated a chain of brick-and-mortar pawn shops in different states”
so they actually physical shops, we were thinking the business model would work in Singapore with only online presence? then many questions were arises
- where will you keep the items ? Safe?
- How do I access the value of the items?
- Are you experienced?
- and many others….(which we neverreally think through)
but for those who are interested into this business , these are just some of the pawnshops in Singapore with both offline and online presences
and oh by the way, what spark the topic on pawnshops, simply because of the opening of Resort world and Marina Bay sands – we guess that maybe with more gamblers, there will be higher demand for people to pawn their to raise short-term cash / loans 🙂
so will pawnshops complement to the business of the 2 new casinos that another story all together.