9 golden tips for starting a pawnshop

A pawnshop is a specialized organization that issues short-term loans to ordinary individuals on the security of movable property. By law, a pawnshop can be registered in the form of an LLC or JSC, but not an individual entrepreneur. We will tell you how to open a pawnshop in the LLC format.

Legal features of a pawnshop

Registration of a legal entity for opening a pawnshop is the same as for any other LLC, but there are still some nuances.

1. The corporate name of a pawnshop must contain the word "pawnshop" and its legal form. For example, like this: “Limited Liability Company Lombard“ Golden Key ”.

2. The pawnshop cannot be registered in the apartment. The law requires not only the creation of special conditions at the legal address for the storage and security of the surrendered property, but also the absence of other things in the pawnshop that are not related to this business.

3. Only three types of entrepreneurial activity are available to the pawnshop, specified in the law "On pawnshops" No. 196-FZ (OKVED 64. 2., 66. 9. and 70. 2).

4. The pawnshop is not entitled to dispose of and use the pledged things. The pledged property that was not redeemed on time must be sold at a public auction, or through other channels (if its value is less than 30,000).

5. The founder or participant of a pawnshop cannot be a natural person who has an unexpunged (outstanding) conviction for an economic crime or a crime against the authorities.

6. The minimum authorized capital for a pawnshop in 2021 remained at the level of 10,000 rubles, although bills were introduced proposing to increase it to 50 million rubles.

7. The premises must comply with the requirements of the guidance document of the Ministry of Internal Affairs of the Russian Federation (RD 78. 6. 03-2021). Without this, the security organization will not issue an act of conformity of the premises for pawnshop activities.

The activity of pawnshops cannot be called a quiet type of activity. A large amount of paperwork often forces budding entrepreneurs to abandon the business idea of a pawnshop, and many of those who did open a credit institution close it in their first year of existence. In this business, it is necessary to take into account the requirements of the law, otherwise you will have to pay large fines. To protect yourself from such difficulties, you need to learn the intricacies of entrepreneurship.

How to open a pawnshop in your city and how profitable is this business? General information:

Capital investments - 12,600,000 rubles;
Average monthly revenue - 1,000,000 rubles;
Net profit - 178,000 rub .;
Payback - 84 months.

Legislative acts

A pawnshop is a commercial organization that issues loans on collateral, and also carries out activities for the storage of property.
The loan office is responsible for insuring the property that was transferred by the client as collateral.
The pawnshop is obliged to make an appraisal of the value of the property that was transferred to him on bail or storage.
When an institution issues a collateral to a client, it is mandatory to draw up a special loan agreement, which specifies the main terms of the transaction.
After issuing a loan, the lender keeps 1 copy of the security ticket, and gives the second to the client.
The client is obliged to return the received loan and the interest on it, which were agreed upon at the time of drawing up the contract. If the borrower does not repay the loan for more than 1 month, the mortgaged property becomes the property of the institution.
The property can be sold through retail sale. If the value of the pledged object exceeds 30 thousand rubles, the sale takes place through tenders, auction.
The pawnshop has the right only to issue loans and keep property, and the sale of things that fall under the "collateral case" can only take place in a separate private enterprise.

A sample pawnshop business plan with calculations includes several more regulations and local acts. One of them is the order of RosFinmonitoring No. 203 dated 03. 8. 010. The document stipulates requirements in relation to the education and training of working specialists who will carry out transactions with funds, with the aim of protecting against legalization of profits obtained by illegal means. The order regulates the following issues:

Basic training requirements for cash transactions.
Frequency of training, its form.
Accounting for training progress.

If the order is not followed, the organization may be held accountable, and in case of systematic violations, the company will be closed.

Stages of implementation of the Lombard business plan

registration of activities with the Federal Tax Service;
registration with the Federal Financial Monitoring Service.

registration at the Assay Office;
conclusion of a lease agreement;
renovation of the rented premises.

installation of air conditioning, fire extinguishing, video surveillance;
purchase of computer and office equipment, safe, furniture;
recruitment of personnel.

advertising campaign;
purchase of special programs for accounting and preparation of loan agreements;
conclusion of an insurance agreement;
execution of contracts with a private security company;
conclusion of an agreement for the provision of utilities, removal of solid waste.

Correct valuation of precious metals is the key to the success of a pawnshop

Today the clients of pawnshops are the population with an average income level. Such establishments are in demand in the sleeping areas of megalopolises, and in the city center, if we are talking about a small settlement. This pattern is explained by the fact that the middle class of the population is settled according to this principle.

Loan offices are characterized by seasonality - spring or autumn. Most often, people need money before or after vacation to pay off current loans. This jump is insignificant and does not exceed 10%.

How to open a pawnshop

As for starting any business, capital investments will be a mandatory start. In addition to rent and equipment, the cost part includes hiring personnel and advertising budget.

What you need to open a pawnshop:

A universal loan office will require 50 to 100 m² of rented area. If the institution accepts only precious metals, then this figure may drop to 20-30 m².

Staff

The staff of any pawnshop is small. Apart from the owner, it can consist of 4 people.

Commodity expert-appraiser
Security guard
Accountant
Manager

The most dangerous and risky job is that of a merchandiser-appraiser. He must correctly assess the product so that the company does not remain in the red; is obliged to follow the market and be well versed in the value of jewelry. Distinguishing gold from counterfeits is also very important, so a good stable experience is needed here.

The work of other employees is less important.

What else do you need to open a pawnshop

Those who are interested in how to open a pawnshop, first of all, need to know about the purpose of this business. In a pawnshop, people can quickly get money for their jewelry without intermediaries and interest. Over time, the jewelry can be redeemed without any problems. In a pawnshop, you can find the items you need at a price lower than in regular stores.

Before opening a pawnshop (step-by-step instructions will be given below), you need to study the detailed instructions, find out what documents and how much money you need to prepare first. The pawnshop business is a profitable business, but it takes a lot of money to open it. It all depends on what products will be accepted. Pawnshops can be automobile, but in the case of opening such a business, 1 million rubles. will not be enough. Opening a pawnshop for the purchase of gold is more profitable, for it there is enough amount of 1 million as start-up capital.

Where to start a pawnshop business?

How to open a pawnshop, you can find out from the professionals, they will help you competently draw up a business plan and study the market, evaluate competitors. On the topic "opening a pawnshop" step-by-step instructions are available on many specialized sites on the network. To open a profitable business, you need:

rent a room for the pawnshop business;
conduct, install and configure video surveillance;
conclude an agreement with a security organization and make an alarm ;
purchase special furniture, cells and safes for storing products (you need to rely on long-term and daily storage);
if you plan to open a car pawnshop as a business, you need a parking area.

Knowing how to open your own pawnshop to buy gold, you can avoid many problems. A business will not function properly without staff. You will have to hire several people to work:

A merchandise appraiser is the most responsible position. He is engaged in the assessment of accepted items, a specialist must be well versed in prices for all groups of goods.
The guard must be constantly in the pawnshop premises in order to call the police if necessary.
Manager - the person responsible for organizing the business on the spot and for ordering the pawnshop.
The accountant will handle all financial affairs in the business.

Specialists must have appropriate education and work experience. Men are the best versed in technology, therefore it is better to do it with assessment. Girls can also evaluate and determine the authenticity of precious stones. The number of employees depends on the work schedule of the pawnshop. To ensure security, grilles, an alarm and an alarm button are placed in the room, which transmits a signal to the security organization. For a quick response on site, it is best to hire a security guard.

Choice of name and area

The name should not be long, so it will be hard to remember, it will take more money to make a sign. Ideally, the name will consist of two words, one of which is "pawnshop".
No need to repeat the names of competitors, this can cause problems. Therefore, initially you need to study the names of pawnshops in your city.
You can come up with several names and conduct a survey among friends and relatives to choose the best.

Everyone knows what a pawnshop is. Meanwhile, this is a specific type of activity that requires a certain experience and skills from a businessman. Due to the crisis situation in the country, this business is now in demand more than ever, and therefore, with a competent approach, it is realistic and affordable to organize your business from scratch in this area. It is only important to know what is needed to open a pawnshop in Russia.

The activity of pawnshops in the Russian Federation is regulated by Federal Law 196 "On Pawnshops", to start work you will have to issue a permit to trade in jewelry, obtain several certificates, and conduct professional training of personnel. Despite this, the profitability of the business is so high that in a few months you will be able to cover all costs and reach a good level of self-sufficiency.

How pawnshops work

A pawnshop is a kind of credit organization that issues funds secured by a valuable thing. The principle of work of pawnshops has not actually changed since the inception of this business idea, since the 15th century. Jewelry is the same investment as securities or real estate, and if necessary, they can always be monetized. For various reasons, in different eras, people pawned jewelry in pawnshops - this is a really quick and reliable way to get money, and therefore such a business will always be in demand.

Any person who has a passport and has reached the age of majority can get a pawn loan. Jewelry is valued at a fixed price set by the pawnshop, and the customer is given an amount equivalent to the item. He must return the money within a month, along with the interest that is charged for each in the process of the loan. If this does not happen, the jewelry becomes the property of the pawnshop. Thus, it is one of the most profitable businesses in Russia.

What documents are needed to open a pawnshop

To open a pawnshop, you will have to collect a fairly extensive package of documents, the receipt of which may take a long time. What documents are needed to open a pawnshop:

certificate of LLC or CJSC;
permission to sell jewelry;
certificate of assay supervision;
certificates to undergo special training for all employees of the pawnshop.

In addition, you will need to register with the tax authority, the financial monitoring service, and the assay office. You will also need to obtain a certificate confirming the accuracy of the jewelry scales, since they will determine the amount of payment to the client.