A pawnshop is a business that offers secured loans to people, with items of personal property used as collateral. The items having been pawned to the broker are called pledges or pawns. While many items can be pawned, pawnshops typically accept jewelry, musical instruments, home audio equipment, computers, video game systems, televisions, cameras, power tools and other relatively valuable items as collateral. Check out our list below to see what we can take for collateral.

While pawnbrokers sometimes make outright purchases of goods, "pawning" is actually borrowing money for your item and being able to get that item back. A person in need of money, who owns an item of value, can use that item to secure a temporary loan without having to sell their items. Customer's can bring an item to a pawnbroker, who will evaluate the item, and then decide if they can offer a loan on it. If an offer for a loan is made, and accepted by the owner of the property, a loan contract is then drafted. The pledgor (owner) must produce a state issued (non-expired) picture identification. The pledgor must have his or her identification to pawn an item and to redeem a loan. All of the information contained in the ID, along with a complete description of the item or items being pawned, is incorporated into that contract (as well as the loan terms). The pawnbroker is required to collect this information and record it, even if the pawnbroker is purchasing the item outright as opposed to loaning money on the item. All of this collected information is forwarded on a daily basis to the local police department to allow the police to compare these records versus reports of stolen items.

The State of Ohio, Division of Financial Institutions, inspects, regulates, and licenses Ohio Pawnbrokers. The terms are set by the state. Loans are held for a minimum of approximately four months (three months plus a thirty day notice) and the maximum rates are 6% interest per month on a loan and $6.00 a month storage. Other fees, such as mailing fees and firearms background check fees, may apply. The pledgor therefore has that amount of time to either redeem the loan and pick up their item by repaying the principal amount borrowed plus the accrued monthly interest and storage fees, or in most instances may make a payment of the interest and storage fees to extend the life of the loan. If the pledgor fails to make a payment or to payoff their loan by the end of the loan period, the item forfeits, becomes the property of the pawnbroker, and is sold. The items that are not redeemed by the customer become the bargains of pawnshop shoppers.

Thirty days before a loan expires, a notice (as required by the state) is mailed to the pawn customer. Proof of mailing to the last provided address of the pledgor notifying them of the upcoming expiration of their pawn.