For small business owners, finding ways to keep the lights on, stay competitive and grow their business while staying within budget is a constant balancing act. Finding creative solutions to keep your cash flow moving in the right direction and stay ahead of the competition is crucial, especially in markets where profit margins are extremely tight.

One important financial tool every small business owner should consider is their local pawn shop. Let’s look at several ways in which your local pawn shop can help your small business.

If money is tight, consider a loan

According to the National Pawnbrokers Association, “Pawn customers represent the working families of America who periodically experience an unexpected need for short-term funds. Pawn loans keep the electricity on, the rent paid and cars running with full tanks of gas by providing a safety net to over 30 million unbanked Americans. Independent pawnbrokers also provide services to America’s small businesses.”

For many small business owners, pawn shops can be an important lifeline in times of financial need. For example, a business may bill customers for products or services, but then must wait anywhere from 10 to 30 days or longer for those customers to make their payments. During that time, the business may experience a significant unexpected expense – like a major unplanned repair – or have several other expenses come due simultaneously, like payroll, taxes and inventory costs that can’t be delayed.

This is where a loan may become necessary to keep the business afloat temporarily until cash flow picks up again. Bridge loans, also known as swing loans, are a type of short-term loan or credit extension that provides financing during a transitionary period. While many traditional lenders offer short-term bridge loans, applicants often face high interest rates, unexpected contingencies or conditions and a significant amount of paperwork. Instead, your local pawn broker can offer a simple loan in minutes. You can pawn any number of high-value business assets, get the cash you need immediately with little to no paperwork or credit checks, and pay off the pawn loan and retrieve your items when your cash flow frees up.

Sell old equipment to invest in your business

All small business owners understand how vital equipment depreciates over time. As these important tools and equipment age, they tend to break down more, become unreliable and may end up costing a business more to keep running over time.

While selling outdated or even unused equipment is a smart way to upgrade your equipment, it’s often hard to find the right place that will give you the best deal. However, your local pawn shop is always available and happy to take a wide variety of used goods, including office furnishings, landscape equipment and power tools. As a bonus, you don’t have to shop around or visit numerous stores, and you don’t have to spend valuable time negotiating with different people. Your local pawn shop is a one-stop shop for all your needs, when it’s convenient for you.

Try new equipment at a fraction of the cost 

As your business grows, you may want to try out some new equipment, but are hesitant to commit or plunk down a lot of money on something you haven’t yet tested. This is where the one-stop nature of a pawn shop can be a huge asset for your business. Because they deal in a wide variety of quality, gently used goods, pawn shops offer tremendous flexibility. You can test out new features and different models of computers, laptops, printers, mobile devices and tablets and much, much more, under one roof – while getting a great price.

And even after testing out or trying something new, if you decide it’s not the right fit after all, you now know the perfect place to sell it.

Fund new ideas or secure resources quickly

Faced with a chance to land a lucrative new project, but don’t have the resources to support it? Found a great deal on a piece of equipment that will help your business expand significantly, but you need to purchase it this week? Want to turn a great idea into a prototype to expand into a fast-growing niche?

Entrepreneurs are always looking for unique ways to stand out from their competition. They’re also looking for creative ways to fund these new ideas. As today’s gig and side hustle economies continue to flourish, aspiring small business owners of all types are looking at non-traditional ways to secure cash quickly and easily, without the need to rely on funding sources that are often slow, hard to navigate and difficult to secure.

While many business owners often turned to credit cards or home equity lines of credit in the past, those primary financing sources have tightened up in recent years. Left with fewer financial options, small business owners are increasingly turning to pawn shops for help. Time-sensitive opportunities can’t wait for a tight economy to ease, or for a standard bank loan to be processed. However, with a single high-value asset like a luxury watch or a handful of unwanted but gently used electronics, a small business owner can get a hassle-free pawn loan within minutes to fund a new project.

Examples of using pawn shops to fund business ideas include:

  • Purchasing a car to become a rideshare driver.
  • Purchasing equipment to start a delivery service or landscaping business.
  • Pawning gold or jewelry to invest in a new business opportunity.
  • Pawning luxury jewelry, watches or art collections to purchase commercial property.
  • Pawning vintage collectibles to create a revolving line of credit.

In today’s fast-paced market, your small business faces several challenges to stay profitable. Don’t let short-term financing needs keep you from growing your business. Gene’s Pawn is an excellent way to secure a short-term loan, without the credit checks or headaches of dealing with a bank. We are your partner in business. Contact us today to learn how we can help your business thrive.