Santa Clarita Pawnbroker

A pawnshop also known as a pawnbroker, such as Valencia Loan Company, a Santa Clarita Pawnbroker, is a place of business or a person that gives loans on (or makes purchases of) items that have value to the pawn broker. The origin of the word “pawn” comes from the Latin word, “pignus,” which means “pledge.” Goods that have been pledged or “pawned” to the broker serve as the collateral for the loans.

When merchandise is pawned in exchange for money that has been borrowed for a certain period of time, the one who pawned the item is typically able to buy it back by paying off the loan and the associated interest and fees. The time period of the loan is regulated by government statutes and/or the written agreement and/or policies of the broker. The amount of time, and rate of interest, is governed by law or by the pawnbroker's policies.

If the agreed upon loan is not repaid or extended in the period of time specified in the agreement the loan collateral is typically offered for sale by the dealer. One benefit of borrowing money through a pawnshop, such as your Santa Clarita Pawn Shop, is that if the loan defaults and is not paid on time, the defaulted loan is not reported to the credit bureaus and does not appear on one’s credit report. This is because the lender holds the collateral and may be repaid by selling the item.  

In addition to making loans, the secondhand dealer may also purchase items directly. So, not only does the proprietor lend money, but he may also fulfill the financial needs of the customer by buying the items outright.

In addition to the Santa Clarita Pawn Shop in our Valencia office, VLC also has an additional location in its Beverly Hills pawnbroker office. If you have questions or need to sell an item or make a collateral loan, please feel free to call at 310-276-LOAN (310-276-5626) or 661-310-2820.