For some, transactions need to happen in a certain way. You buy something and hand cash over, or you swap one service in payment of another. Pawnshops are similar, but not as lucrative as you think! But are they better than instant cash loans in NZ? Short answer – no.

How Pawnshops Work

If you’ve never been to a pawnshop, you might not know how they work. It’s simple. When you need money, you can temporarily sell an item of value for cash. When you get the money, you leave the item with the pawnbroker. Later, you repay the loan to retrieve your item, or the pawnbroker sells it for a profit to recuperate their expense. You can use it to sell things outright, but you almost always get a raw deal.

The Risk 

When you need an instant cash loan in NZ, it’ll most likely be for a particular reason. Maybe you need to fix a car, or you need to refill a prescription that your medical insurance doesn’t cover. These are financial emergencies, and a pawn shop can be an option, but they are risky. You might not get the amount that you need. When you need an instant cash loan for something specific, you’ll know how much you need. And just because you know how much your laptop is worth, you aren’t guaranteed to get that amount from a pawnbroker.

Remember, goods are only worth as much as someone else is willing to pay for them – regardless of how much you spent in the initial purchase! If your pawnbroker doesn’t give you enough, you’ll need a second avenue for additional financing. The other risk is the chance of losing your item of value from being unable to repay their exorbitant interest rates.

What’s The Alternative?

The alternative to pawnshops is using a private lender. Getting instant cash loans in NZ from a private lender is much safer. You can apply for the amount that you need, and get approval on the same day. There’s no need to use collateral, and you won’t have to argue to get what you think your valuables are worth. Your loan will be approved based solely on your ability to repay it plus interest, according to what you earn as an income.

Instant cash loans in NZ are a much better alternative to pawn shops to get extra money when you need it. There’s no risk of losing something special to you, and you get same-day approval of the amount you need. Everybody wins!