Pawnshops traditionally successfully operate in the lending market. For example, in Moscow there are more than 500 of them. However, this business, which has already become familiar, is able to surprise Russians by acquiring new directions and diversifying their work.
A growing number of entrepreneurs are interested in how to open a pawnshop in a metropolis. A loan secured by property in recent decades has tightly entered the life of the middle class. People who are confident in their income in the long term, sometimes experience a temporary shortage of funds, which, as you know, tends to occur instantly.
On the horizon looms a "burning" ticket; the long-awaited real estate suddenly turned up, but several thousand "American presidents" are missing ... There are many such options. Do not sell your car in order to urgently help out money! Even in the middle of the last century, the Americans themselves found a way to get out of this predicament, and helped them do this with a loan secured by a car.
By the end of the last century, the aforementioned type of lending conquered Europe and the developed Asian countries. Nowadays, it is actively developing in the Russian lending market. With it, car owners can get a pawnshop on the day they contact us short-term loan in the amount of 5 to 70 thousand dollars.
Are you ready to establish a pawnshop?
The pawnshop as a business has a certain specificity: not only qualifications are important, but also the deep decency of employees, high official discipline, a conscientious attitude to document circulation, and deep specialized knowledge. There is no place for random people with a lack of responsibility, who are not able to scrupulously conduct business.
It is advisable for an entrepreneur who invests personal and / or borrowed funds in a business to have an appraiser certificate and also have personal practical experience before opening a pawnshop. Accordingly, an entrepreneur who decides to start this business should have all the knowledge of an appraiser and a cashier, but multiplied by high responsibility.
After all, it was he who would have to not only organize the work, but also monitor its implementation: make sudden checks on the security of collateral, monitor the unconditional fulfillment of established tariffs by personnel, their level of professional knowledge and performance of duties. It should be a model for subordinates in the performance of duties and attitude to business. If a businessman does not feel the above qualities, then we recommend that he find another profitable business for investment.
What interest is the pawnshop business? Judge for yourself. By investing $ 180 thousand in it, you can expect a payback for a year by investing $ 250 thousand in a business in a year and a half, 280 thousand in two years.
Step-by-step instruction
As mentioned above, before you open a business based on lending, you should have experience in this. The practical skills of orientation in problem situations are especially appreciated in the work, which enable the entrepreneur to circumvent losing options and avoid costly mistakes in the long run. How to open a pawnshop? Step-by-step instructions will not be superfluous.
After the decision is made to borrow money on the security of a car, registration as a legal entity follows.
Having come up with a name for your future private lending institution, which, by the way, must contain the word “pawnshop”, you then plunge headlong into a sea of administrative formalities.
The legislation of the Russian Federation provides you with a choice of possible organizational forms: LLC, ZAO and OJSC. What to choose? Take advantage of the experience of previous generations - choose LLC. This form of entrepreneurship is executed in a relatively minimal package of documents. Think, you have a relatively small business.
Therefore, all the same, it will be evaluated not by stock quotes, but by actual cost. The same will be told to you by employees of law firms, who not only know how to open a pawnshop, but also know how to do it. They are always ready instead of you to execute such documents in a short time and obtain the necessary licenses for a moderate fee (from 7 to 10 thousand rubles), sparing your time and nerves (which, of course, are more expensive.)
Already at this stage (when registering a legal entity), it is desirable that an experienced appraiser-economist work in conjunction with the entrepreneur, because when opening a business regulated by the Law of the Russian Federation “On Pawnshops” of July 19, 2007 a lot of paper work is to be done. This staffing, job descriptions, daily routine, organization of planning and accounting.
Details matter
Obviously, for proper registration, it is not enough to know what documents are needed to open a pawnshop. The professionalism of design is important, taking into account all sorts of “trifles” that become “suddenly” significant and decisive in a legal conflict. It is fundamentally important to make competent registration of constituent documents.
In particular, the following activities of the pawnshop must be specified in the charter: value storage services, short-term loans secured by movable property, advisory services, car purchase services. It matters in legal conflicts.
Having a completed set of constituent documents, as well as writing a state registration application and enlisting the decision to create a legal entity, the entrepreneur will have to register with the tax authority (you will also be required to pay a state duty).
Choice of office and secure parking
What do you need to open a pawnshop? Profitable rent! This is an axiom of this kind of activity. Therefore, we draw your attention to another aspect of the preparatory work: the conclusion of contracts for office rent, as well as the use of paid parking services.
Fortunately for auto-pawn businessmen, the size of the office is not critical to the profitability of this business. The savings are obvious, since the area of the leased premises can be small - within 100 m2.
In addition, it is not necessary to rent an office in the center, which also significantly reduces the amount of rent. You can rent it in a residential area (customers are automobiles).
The main thing is that there are busy streets, freeways, and parking for cars nearby.
However, an office alone is not enough for this business. What do you need to open a pawnshop yet? A place to store collateral.
The high price of collateral stipulates thorough and safe equipment for the location of collateral vehicles in order to avoid all kinds of risks. The Federal Law “On Pawnshops” places the pawnshop on the sole responsibility for storing collateral. Storage rules must be carefully specified in the documentation of the pawnshop.
You can equip the warehouse premises, equipping it with an alarm and providing round-the-clock protection. There is another option, cheaper - an agreement with a guarded parking lot. In any case, the safety of collateral vehicles should be given special attention.
It should be noted that if it is possible to equip the place of storage of collateral machines with additional security and anti-theft means, then this is not worth saving.
Office equipment
The Russian Federal Financial Monitoring Service thoroughly regulates what it takes to open a pawnshop. Office - a room specially equipped with security requirements in mind, equipped with a standard place for financial institutions for a cashier — a cash register and a reliable cash vault.
The design of the cabin is chosen by the entrepreneur from three standard options according to the features of this pawnshop premises. It is equipped in accordance with the requirements of the Order of the Federal Service for Financial Monitoring No. 203 of 08/03/2010 and provides 1-3 class bullet resistance.
The reinforced design of such cabins equipped with an “alarm button” is necessary to neutralize all kinds of risks. It has technical characteristics that effectively protect the cashier from a PM shot and AKM modifications. Cash machines, office equipment, and specialized programs are installed in the pawnshop. The staff should have both certified motor vehicle appraisers and cashier-inspectors who have undergone special training.
Staff and communications
When organizing work, it is mandatory to carry out formal, but mandatory activities. As the Americans say, high staffing requirements are what you need to open a pawnshop. By the way, not only a pawnshop, but also any business. In the conditions of the Russian lending market, this goal is achieved by concluding labor contracts with staff, their training and certification, and the regulation of duties in the service instructions (for an appraiser, cashier, security guard). It matters the unconditional and constant implementation of the daily routine and their responsibilities.
Speaking about the location of the warehouse and office, it should be noted that spatial proximity with some organizations is desirable. This is also recommended to consider when thinking about how to open a pawnshop, choosing the best option.
First, the pawnshop in the course of its lending activities will need close cooperation with a notary. Your clients will draw up a general power of attorney for the sale from him. Cooperation should also be established with a car service that determines the market value of a collateral car.
It is desirable that a police unit serving the security alarm of the pawnshop is nearby.
Work specifics
The provision of pawnshop services is accompanied by a friendly service, active advertising in the media and, of course, the so-called word of mouth. Therefore, each quality-served customer can be considered an agent of the pawnshop. According to statistics, informal reviews of such a client in the future will increase the demand for the services of this credit institution. At the same time, customers appreciate a fair and impartial assessment of the market value of the car, affordable prices and service.
Significantly helps the work of this credit institution company website. Wanting to get a loan secured by a car, potential customers can first calculate the market price of their car using a pawnshop calculator and, accordingly, the maximum amount and terms of the loan. Here you can also fill out an online loan application. In this case, the pawnshop staff will contact the client at the phone number indicated by him.
What makes receiving a car loan easier
Market attractiveness and liquidity of a collateral vehicle (bus, car, truck, motor vehicles) are of importance. It must be in working condition. In this case, the amount of a possible loan reaches 90% of its value.In this way, through the proper condition of his car, the client maximizes the money received on the security of the car.
As follows from practice, on the eve of a visit to the pawnshop, it is advisable for the customer to call back on the telephone number provided on the website in order to agree on the time of service.
Employees of the company, quickly assessing the market value of the car, will immediately issue cash. Lending conditions are standard (short-term - usually 30 days, the percentage for using a loan is in the range from 3 to 4%).
Pawnshop services are aimed at generating income from interest on loans, funds for the penal preservation of vehicles and for the sale of unredeemed cars.
Honest business is the foundation of long-term business success.
Unfortunately, having opened this classic and useful for the middle class business, some unscrupulous entrepreneurs install uncivilized raider approaches into it. How to distinguish a "pirate" pawnshop?
The terms of his loan involve an increased percentage and completely predatory penalties. Employees knock down the estimated price, significantly lowering it relative to the market. The founders of this "business" rely on the fact that the client will not be able to cope with the interest, then he will increase his debt in a landslide manner and, finally, buy out the vehicle at an obviously low price.
Obviously, such a “black” business does not have serious development prospects.
Accidentally turning to these unfortunate entrepreneurs and noticing the above price distortions, do not be shy, immediately say goodbye and leave.
Planning
The pawnshop as a business should be conducted as planned at all stages of formation and development. Its main guidelines are profitability and the absence of excess collateral. Planning for this loan company includes several items. The first is a business project. Initially, economic efficiency and feasibility of borrowing are taken into account.
In this case, the costs and the estimated average level of profitability for reporting periods are calculated. The project is a phased plan for the creation and development of this commercial enterprise.
The entire pawnshop business plan is based on the cornerstone of its profitability — the average interest rate. A thorough legal elaboration of contracts concluded with clients is also important. They should not have loopholes that bring business costs. For customer overdue, a penalty mechanism should be provided. The most effective should be the mechanism for the implementation of collateral vehicles. It is advisable to do this through a car dealership, the experts of which initially had already evaluated the transport before it was pledged.
A business plan for a pawnshop should also take into account its working throughput: the expected number of customers per day, the average amount of collateral, the stages of increasing the dynamics of work, the ability to attract funds and specialists to the business.
Conclusion
Having launched a pawnshop business and having achieved its profitability, an entrepreneur should not rest on his laurels. After all, we have to consistently strive to ensure that things work like clockwork. It is important to constantly keep a finger on the pulse of economic activity. The commercial success of the enterprise should immediately be followed by material incentives.
The subject of special daily care is the safety of vehicles. Registered must be the mileage of cars pledged and their damage, if any. And one more thing: employees should be secretly monitored. The dishonesty associated with bribes and unjustified manipulation of tariffs should be resolutely and immediately suppressed. There is only one tool - dismissal. Excluding merit and length of service. These are the laws of the financial world.
In the case of profitable operation of the pawnshop, one should not minimize the costs.Allocate funds to train staff, especially appraisers. Obviously, for the successful work of the company, access to the electronic legal framework should be provided.
For officials, the accounting of business processes should be transparent and kept automated, for example, using the software “1C: Enterprise: Pawnshop”. Both cashiers and appraisers should communicate with clients in a concise business style, have a keen sense of their needs, but be principled both in paperwork and in the unconditional implementation of established lending rules.
