A pawn is a short term collateral loan. Pawning is the original form of banking and has been around for thousands of years. The way a pawn works is, you simply bring us an item of value that you wish to pawn. We offer you a dollar amount and we then generate a legal contract that explains everything in detail. The contract explains the amount of time you have and the amount of money you will have to pay at the end of your loan date. You have the option to renew your loan as many times as you want and the pawnbroker is there to help you understand and give you the best option. How a Pawn Loan Works