What does pawnshop mean?

Pawnshops or pawnbrokers are individuals or businesses who loan money to people in exchange for valuable items which are used as collateral. Collateral-based items vary from jewellery, cameras, electronics, musical instruments, and more. The items offered up as collateral will be returned to the owner once the money that has been loaned is paid back in full with interest. If the pawn loan does not re-pay the pawnbroker within the agreed-upon time limit, the pawnbroker can sell the item to another customer to recoup the money they loaned to the original customer.

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