How Do I Open a Pawn Shop in South Africa?

Select an available location since pawnshops have distance requirements from schools.
Leasing an old pawnshop can minimize zoning issues.
Build inventory by visiting pawnshops, sales, auctions, and browsing classifieds.
Earning interest on loans and profits on retail sales are income sources for pawnshops.
Pawnshops target 15-25% profit margins.
Laws regulate pawnshops to restrict interest rates and fees charged to military personnel, check money laundering and outline credit terms.
Startup costs range from $15,000 to $50,000 or more.
Costs fund loans and purchase inventory.
High traffic shops need larger budgets.
Pawnshops must obtain licenses and permits to operate legally in Texas, including a state pawnshop license.
Choose a business structure and register a business name.

Earning interest on loans and profits on retail sales are income sources for pawnshops.
Pawnshops target 15-25% profit margins.
Startup costs range from $15,000 to $50,000 or more.
Costs fund loans and purchase inventory.

Pawnshops offer collateral-based loans.
The pawnbroker keeps your item safely for 30 days until you return to repay the loan with interest.