How to open a pawnshop? Is it profitable to open a pawnshop? How to open your own pawnshop. What do you need to open a pawnshop?

Opening a pawnshop is a rather specific type of business. You need to have a good understanding of how these establishments work to be successful.

In this article we will look at all the nuances of such an event, and also provide a detailed business plan.

Is it profitable to open it?

There is no and cannot be a specific answer to the question of whether opening and further maintaining a pawnshop is profitable. Here everything will depend on a number of factors: office location, advertising effectiveness, rent for premises etc.

It is best to choose the busiest place with a lot of people for this undertaking. The optimal option for office location is the city center, in the immediate vicinity of large shopping centers, shops, hypermarkets and other establishments with a high level of traffic.

However, this is not a guarantee that the new business will generate stable income. The issue of organizing a pawnshop should be approached seriously, carefully calculating all expenses, risks and the level of expected income. In addition, you need to draw up a detailed business plan, paying special attention to the economic part.

What documents and permits are needed?

Any business activity requires the availability of appropriate documentation, a number of regulations and permits. Opening a pawnshop is a very troublesome undertaking; you need to be prepared for this from the very beginning.

The fact is that the legal aspects regulating the work of a pawnshop are not the same in different regions of the country. The list of required documents and certificates is also not the same. It may vary depending on the type of pawnshop you are going to open. Most often, a new entrepreneur is required to:

permission to sell jewelry;
certificate of assay supervision, if you are going to issue loans secured by jewelry. To obtain it, you need to register with the Assay Office;
all kinds of certificates, documentation for submission to the tax service;
you will have to register with the financial monitoring service;
documents confirming the accuracy of laboratory scales;
obtaining certificates for pawn shop employees, etc.

The list of required certificates, confirmations and permits is quite impressive. Moreover, some certificates demonstrating the honesty and legality of the company’s activities will have to be submitted to the relevant authorities more than once: every month, six months, year, etc.

Types of pawnshops

There are several types of pawnshops specializing in:

accepting various types of equipment as collateral;
accepting jewelry, jewelry, 500-carat gold and other valuable metals as collateral. A jewelry pawnshop does not require additional storage space for items. However, it may take a lot of time to resolve the legal aspects and collect the necessary documentation;
antique products, accepted on a very good deposit. Visitors bring paintings, awards, ancient souvenirs and coins here. They can also accept expensive clothes made from natural fur (mink, lynx, chinchilla, arctic fox, etc.). This pawnshop is a favorite place for many collectors;
issuing a certain amount of money as collateral for a car. In order to open a car pawn shop, you will need additional parking area. However, the income from operating such an establishment can be quite good.

Step-by-step procedure for opening and running a business

To open a pawnshop from scratch, you need to carry out preliminary organizational work, which may include:

Thorough market research. The pawnshop business in Russia is only gaining momentum. Therefore, in some regions of the country, pawn shops can be found almost everywhere, while in others you cannot find a single establishment of this type. The reason is the lack of serious online players.
Before making a decision to organize a business, you need to calculate all possible risks, try to predict whether this project will be successful, whether such services are in demand in the city and region, whether there is competition and how strong it is, etc.
Choosing the type of establishment. A pawnshop can be: jewelry, technical, automobile, antique, etc. It is necessary to decide on the type of services offered, as well as the relevance of their provision.
Preliminary calculations for investing funds. At this stage, you need to calculate the funds that will be needed for registration, registration and collection of documents, purchase of equipment, etc.
In addition, further monthly expenses for salaries of employees, rent of premises or parking should not be overlooked. Based on the amount of monthly investments, you can calculate the interest rate of loans that will be issued by the institution using property as collateral.
Choosing a location. The main requirement here is high availability and visibility. It is best to locate a pawnshop near busy streets, highways, shopping centers and other places with good traffic. A laconic and memorable name, as well as a catchy and well-lit sign will do the trick.
Registration of a legal entity. It is worth considering that the principle of taxation of an LLC or CJSC is general. The charter must clearly define the activities of the institution:
- issuing a short-term loan secured by movable property;
- storage services for valuables;
- provision of information services and consultation.
The name of the legal entity itself must certainly include the word “pawnshop”.
Preparation of documents, obtaining certificates, permits and certificates. This is a very troublesome and difficult stage, requiring a lot of patience and attention, and also taking a lot of time. Currently, compulsory pawnshop licensing is not applied. The list of required documents will largely depend on the type of institution, as well as the area where it is located.
Design development, logo selection, as well as a number of other works aimed at creating a cozy atmosphere and a presentable appearance of the establishment.
Equipment purchase. It all depends on the type of pawnshop, as well as on the personal preferences of its owner. However, it is unlikely to be possible without:
- commercial equipment: display cases, shelving, counters and racks, chairs for visitors, information boards, etc.;
- office equipment: computer equipment, MFP, telephone, Internet connection, etc.;
- equipment to ensure the proper level of security: security system, surveillance cameras, reliable and durable metal doors, locks, etc.;
- special devices: high-precision scales, equipment for checking the authenticity of jewelry, etc.
We need to work on internal documentation. We can talk about preparing a cash register, a magazine for briefing actions in case of fire, drawing up employment contracts, as well as orders establishing interest rates and the cost of precious metals and other products.
Advertising. In order for people to know about your existence, you need to tell them about it. Signs and posters placed on the facade are quite relevant. Sometimes they resort to posting notices or holding events in honor of the opening.

Selection of premises and personnel

Most often, the offices of such establishments are located in large business centers. However, if this is not a network of branches, but one single pawnshop, and its organizer does not have enough funds to pay the rent, then you can choose a more economical option.

When choosing a premises, you should take into account the type of pawnshop. For example, an establishment that issues loans secured by equipment or antiques requires a separate room for storing things and accessories. A car pawn shop must be equipped with a parking lot. This will require separate costs for renting the territory.

When the pawnshop is ready to operate, it’s time to hire staff.

After all, they will have to deal with jewelry, all kinds of equipment, and even cars of various brands. It is important that the employee has a good understanding of this type of goods and is able to correctly assess their cost.

In addition, an establishment definitely cannot do without cashiers, loaders (in the case of work with large equipment) and sellers. A separate role is assigned to the pawnshop manager. True, sometimes the appraiser takes over his functions.

Security questions

Before starting work, you need to make sure that security is ensured at the proper level. After all, everyone knows that a pawnshop is the very place where not only money is stored, but also all kinds of valuables, jewelry, expensive antiques and much more. It is necessary to provide reliable protection against hacking.

Special attention should be paid to the presence of a panic button and alarm. It is possible to cooperate with a security organization or hire security guards yourself.

Control over everything that happens in the establishment, as well as maintaining order, is ensured by choosing software. This will help, among other things, to check the honesty of the staff, identify the presence of theft, etc.

How much does it cost and what will be the income?

Opening a pawnshop from scratch is a troublesome and very expensive business. The cost of organizing a business will directly depend on the type of establishment and the services it provides, the location (city, district, region, etc.) and a number of other factors. The rent for premises in the center of a metropolis is several times higher than the same rent for an office in a small provincial town.

On average, it takes from 1 to 1.8 million rubles. The period during which the business will fully pay off and begin to make a profit can be about 1-2 years. So, a small pawnshop after a 3-year period can bring a profit of 100-150 thousand rubles.

The period from the opening day to the end of 6 months of operation of the establishment is especially important. This period of time can be called critical: funds have already been invested in opening and developing the business, but it has not yet turned into a plus. In order to make a profit, you need to achieve high daily traffic: on average, from 30 to 50 people per day. Otherwise, the establishment will continue to bring only losses. That is why, after six months from the date of opening, over 30% of pawnshops simply close.

Interview with the owner of a chain of pawn shops

The video shows a detailed story about the business associated with these establishments:

Useful information from the world of jewelry

How to make money at a pawnshop

Everyone knows what a pawnshop and buying are, but how many have thought about cooperation with these organizations, about how to make money from them?

Let us immediately note their difference. A pawnshop is a credit institution that provides loan services for a certain period of time secured by movable property of value, which can then be redeemed by paying accrued interest.

The process looks like this: the client brings his jewelry, Swiss watches, collectible coins, etc. to the pawnshop, specialists carefully study it, check for authenticity, evaluate it in accordance with the current price of gold on the world exchange and offer their own price, which , we must not forget, is always below the purchase price. A pledge ticket is issued, which indicates the borrower’s data, characteristics of the item, appraisal amount, loan term, repayment date, interest rate, and the possibility of early repayment of the loan.

If the borrower is unable to repay the money on time, the pawnshop, at its discretion, may provide a grace month, during which the product is still stored in the pawnshop and is not sold. If the borrower cannot pay his debt, then the item becomes the property of the pawnshop. It can be sold in a matter of days.

Buying differs from a pawnshop in that the client is not given the opportunity to buy back his product. They buy the product from him at a price lower than the purchase price, but more attractive than in a pawn shop.

As for items that come into the possession of a pawnshop or purchase, they are put up for sale. Specialists in this business and collectors are well aware of this, because this is where you can buy authentic jewelry from luxury brands, Swiss watches, and collectible coins at an attractive price. As practice shows, products do not stay here for long. And this is not surprising, where else can you buy, for example, original Cartier watches for much less than the original purchase price.

Having bought original Swiss watches or jewelry at a bargain price in a pawnshop or purchase, they can later be resold to collectors who are interested in people through sites such as ebay, Avito, a specialized site for the sale and purchase of Swiss watches chrono24, exhibit lots on sites for collectors, and make money from this.

Pawnshops and purchases will exist for a long time, because there will always be those who want to sell gold and those who want to buy it. Cooperation with them will be a very profitable business.

The pawnshop business is considered a profitable business all over the world. The profitability of such a business reaches 40 percent. And this is a very high figure. The profitability of the pawnshop remains high and tends to increase when the banking system in the country weakens and production declines. And the most interesting thing is that the country has a developed middle class. He is the main consumer of pawnshop services.

Pawnshop business: theory and practice

If you have a desire and inclination for the pawnshop business, then it’s worth getting into this business. It is very difficult to go broke in a pawn shop.

So, have you decided to open a pawn shop? What do we have to do? Before opening your own business in the pawnshop business, you need to study the market in which you will have to work, carefully familiarize yourself with the legislation regulating the activities of pawnshops and the relevant by-laws. This includes regulatory documents, regulations of the government of the Russian Federation and instructions, rules and requirements.

Is it profitable to open a pawnshop?

Being in the pawnshop business is a profitable business, so the number of companies and individuals involved in it is constantly increasing. According to information received from government sources, the number of pawnshops in our country increases annually by at least 150 companies. This year was no exception. Therefore, when studying the market, you need to find out the number of companies that are engaged in pawnshop business in your city. To what extent do they satisfy the population's needs for such services?

You need to find a niche for yourself, that is, a direction that you will pursue. Whether you will specialize in household appliances or vehicles, whether you will deal exclusively with jewelry and gold or real estate - all this needs to be determined before opening a pawnshop. It must be taken into account that a pawnshop is, in fact, a small bank that lends to the population for a short, most often, period. But unlike a bank, this credit institution deals only with loans and only on the security of movable or immovable property.

The pawnshop operates only with the public. Therefore, in order not to go bankrupt and have a constant profit, the pledged property must be liquid. Simply put, it should be such that it can be implemented quickly. When choosing a specialization, this point must be taken into account.

After you have studied the market and decided on your specialization, you can start opening a pawnshop.

Opening a pawnshop and the law

We have already discussed the legislation regulating the activities of pawnshops. If before making the decision to open your own pawnshop business you could only familiarize yourself with it, then after a positive decision is made, the legislation must be studied in detail.

Knowledge of the laws and strict adherence to them is the key to successful activity in your chosen field. By the way, in the pawnshop business, deviation from legal requirements is punishable by a fine. Moreover, the fines amount to considerable amounts.

The basis of the pawnshop's activities is Federal Law “On Pawnshops”. Its number is 196. It came into force on July 19, 2007. This law determines the status of a pawnshop as a commercial organization whose activities are of a specific nature. The law allows the issuance of short-term loans secured by personal property. The loan term is limited to 1 year. During this period, the pledged property must be kept by the lender. It is prohibited to sell the pledged property before the expiration of the term.

The mortgaged property must be appraised before the loan is issued. A loan agreement is required. This agreement specifies the validity period, the valuation of the property, the rate at which the loan is issued, and the amount issued.

The deposit ticket is drawn up in two copies. The first is issued to the borrower, the second remains with the lender.

A pawnshop has the right to sell the pledged property only if the delay exceeds one month. In this case, the pledged property goes on open sale. But if its value exceeds the amount established by law (the law specifies an amount equal to 30,000 rubles), then the property is sold at auction, that is, at an open auction.

Pawnshops themselves are prohibited from engaging in trade. The collateral either goes to an open trading network for sale, or an additional company will have to be opened, whose task will be the sale of the collateral property.

You will have to be guided in your activities by the order of a federal organization called "RosFinMonitoring". This order was published on August 3. 2010 under number 203. It has a long name, so we will not give it in full, we will only say that this order approves the Regulations, which define the requirements for the activities of pawnshops. This Regulation sets out the requirements for the education and training of personnel, for transactions with property and funds, how to counter the laundering of criminal proceeds, the financing of extremist organizations and terrorist groups. The regulations determine the timing of training for pawnshop employees, how and what they should be trained, as well as the frequency of retraining of personnel.

This order has the force of law. Failure to comply with its requirements can lead, at a minimum, to administrative liability, and malicious evasion of the requirements can lead to the closure of the company. If a pawnshop is engaged in issuing loans secured by jewelry, then its activities are subject to Order of the Ministry of Finance of the Russian Federation number 68. It was published in 2001 on August 29th. This order approves the Instructions that define the procedure, accounting and reporting when working with precious metals and precious stones.

These are the main legislative documents, the requirements of which should guide the pawnshop in its activities.

The legislation of the Russian Federation determines that taxes are collected from pawnshops on a general basis. The Tax Code, however, determines in Article No. 149 that VAT is not charged on interest received by a pawnshop. It is levied on the storage of pledged property. It follows that accounting records will have to be kept separately for both the storage of collateral and the receipt of interest on the loan.

Opening a pawnshop: step-by-step instructions

Choosing a location, registering a pawnshop

Having studied the legislative acts, we proceed to the preparation of registration documents. But first, in the step-by-step instructions “How to open a pawnshop?”, it seems to us that it is better to decide on the place where the pawnshop will be located. It is advisable to choose a place where it is always crowded. For example, on a busy street or in a public public institution. You need to come up with a name and advertising for your company. Advertising should be bright, but discreet and attractive.

As Russian practice shows, it is best to register a pawnshop as a limited liability company. The necessary list of documents can always be obtained from the Tax Inspectorate. You can simply download them on the Internet on the appropriate website.

A license to operate a pawnshop is not issued.

After registering with the Tax Service, you must register with the nearest branch of RosFinMonitoring. This must be done within a month after receiving state registration. If you intend to work with jewelry, you will have to register for special registration. Such registration is done in the Assay Chamber of the Russian Federation or in the branches of the Chamber. After registration, you will be issued an Assay Supervision Certificate. Then you'll have to check your lab balance. Next, the scales are checked in the prescribed manner - once a year.

What do you need to open a pawnshop?

Registration is completed, the location has been selected, now you can start hiring staff and determine what is needed to open a pawnshop. Let us first give a list of equipment that a pawnshop with a wide specialization will need to operate.

You will definitely need commercial equipment: display cases, shelving that will be located in the sales area, warehouse shelving, racks (aka counters), a cash drawer (several units are possible), a safe, an information board.

You will need office equipment, including a computer with an Internet connection. To ensure the security of the facility, you will have to install a metal door. The door must have a window and a bell. Naturally, the pawnshop must be equipped with a security system.

The pawnshop must also have special equipment to check the property provided as collateral. For some types of property, it is better to use the services of third-party organizations, for example, to check the performance and estimate the value of the car. But to check and evaluate jewelry, equipment must be at hand. The set of such equipment includes laboratory scales, reagents and tools for checking jewelry.

Personnel to work in a pawnshop are selected depending on the type of activity, schedule and volume of work. But the staff always includes a director, an accountant, security workers, appraisers (they are also managers and sellers). You can select employees yourself, or you can contact an employment office or recruitment agency.

Sometimes situations happen in life when you desperately need money, but there is nowhere to get it. Relatives, friends and acquaintances do not have free money, or simply do not want to lend you money for a number of reasons. In general, there is no one to quickly intercept the desired amount. There is also no way to get a bank loan quickly - there are some obstacles and difficulties, and the amount for the loan is too small. Frantically turning over in our heads any other opportunities to get money, we remember some valuable thing that is dear to our hearts as a memory or a gift. You can’t raise your hand to sell and your conscience won’t allow you to, but you can pawn it, given the current extreme circumstances. And then, having grabbed our valuables, we go to the pawnshop. And here the question arises: “What is a pawnshop?”

A pawnshop is a commercial organization that specializes in providing short-term loans secured by movable property of the population and storing their belongings.

This type of loans was established back in the 15th century in France by Italian Jewish moneylenders who came from the Italian province of Lombardy. At first they were called Lombards.

In the 16th century in Germany, in Nuremberg, and then in other cities, the first municipal pawnshops began to appear.

In the 17th and 18th centuries, municipal pawnshops had the functions of a department of “social protection of the population,” issuing small loans to townspeople to save them from hunger and helping to avoid ruin. This protected the city from theft and illegal forms of income and helped maintain order.

In the 19th century, “shoe pawn shops” appeared. Here workers had the opportunity to return their holiday boots. The money received provided life during the working week, and at the end of the working week, having received a salary for the week, the shoes could be bought back and attended some entertainment events in them. Then, if necessary, the shoes were again taken to the pawnshop.

In Russia, the first city pawnshop was opened in 1888 in Vologda. Its founder was the entrepreneur and philanthropist Kh. S. Ledentsov, with the active support of the Vologda City Duma. Its charter became the basis for newly created pawnshops in other cities of Russia.

In modern Russia, the law “On Pawnshops” was adopted in 2007. He legally approved pawnshops as a separate type of business.

Existing pawnshops have different specializations - some will accept your rings, chain, grandmother's bracelet, watch made of precious metals as collateral, others will accept complex household appliances, and others will accept a car.

Things are valued according to a mutually beneficial agreement of the parties, although the benefit for the property owner is doubtful. Most often, people who find themselves in a difficult financial situation and are trying to solve their financial difficulties by any means resort to the services of a pawnshop, so they agree to the minimum amount acceptable for this case. Very often, taking advantage of difficult circumstances, employees deliberately underestimate the collateral value of a valuable item. During this time, the unredeemed item goes to auction, where it is sold quite profitably for the pawnshop.

The pawnshop employees will enter into a pledge agreement with the person who pledges their property, issue a receipt for storage and the agreed amount, as well as a pledge ticket, which is personal.

According to the conditions specified in the contract, the person who handed over the item can buy it back within the time limits established by law. The redemption price includes the amount issued by the pawnshop and interest. An item that the owner did not buy back on time must go up for auction and be sold at auction.

The practice of using pawnshops as centers for the purchase of precious metals is widespread, since combining the main pawnshop activity with any other without collateral is prohibited in Russia, as well as in a number of countries.

In such establishments, interest rates play into the hands of the pawnshop, preventing the owner from buying back his item.

For its services, the pawnshop charges a certain amount of interest on the amount of the loan provided. In different pawnshops, the interest rate may vary - this may include the amount of use of the loan, the amount for storage and insurance, but the law “On Pawnshops” states that the pawnshop must insure the pledged property at its own expense and the benefit must be acquired by the person who pledges the item. Pawnshops have the right to charge interest only for the use of a loan, but charging interest for storing collateral is strictly prohibited, since this is a separate service, but pawnshop employees successfully circumvent this prohibition and include this service in the price of interest on the loan.

In North America and Europe, the practice of storing various valuables without obtaining a loan is very popular. In Russia, this practice was not successful due to the fact that this service is subject to VAT.

Pawn shops often use the practice of charging interest early. In this case, when the client receives a cash loan, the interest that will need to be paid at the end of the collateral period is immediately withheld from him.

Interest is usually calculated using a simple formula: the loan amount is multiplied by the interest rate and the number of days of use.

Well, for example:

The amount of the cash loan (or the amount at which the collateral property is valued) is 10,000 rubles,

Interest rate – 3%,

Period of use – 20 days

This means that the amount of interest will be equal to 10,000 * 0.02 * 20 = 4,000 rubles.

As you can see, the interest rates are substantial, and it is unlikely that a desperate person will be able to return the deposit amount, especially with such significant markups.

Thus, we see that the pawnshop always benefits from its actions by giving money as collateral and charging interest for using the loan, accepting things for storage or selling unredeemed items, among which are valuable antiques.

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