Pawn Shop Functions
- Provides short-term loans to citizens against security
- Limits on interest rates and fees
- Helps recover stolen goods
- Trustworthiness of registered pawnshops
- Items exchanged for money
- Pawnbrokers determine items bought and sold
Loan Process
- Loans with interest charged
- Unpaid items are sold
- Items purchased from customers and resold
Shop Opening Requirements
- Licensing, security, offering loans, and stocking merchandise
- Reporting purchases to police
- Limiting loans to 50-60% of item value
- Compliance with federal laws
- Licensing and registration requirements
- Check against stolen goods lists
Regulatory Procedures
- Apply to Division of Consumer Services with Form DACS-10-111 and $300 fee
- Maintain $50,000 net worth or file $10,000 security
- Register with Department of Revenue for sales tax and obtain certificates
- Keep transaction records for one year
Valuable Considerations
- Researching item values before pawning
- Repayment strategies for loans, especially for sentimental items
Financial Aspects
- Profit margins of 15-25%
- Financial requirements for licensing in Florida
Florida Specifics
- Similar practices to other states
- Profitable due to high interest rates
- Tighter restrictions on new locations
Licensing Process
- Researching profitability
- Establishing legal entity
- Applying to Florida agencies
- Annual license renewal
- Uniform regulations on net worth and security