A pawnbroker is a person who offers loans to individuals who use their personal property as collateral. These items are called pledges or pawns. The word pawn is derived from the Latin patinum, meaning cloth or clothing. Typically, most people's primary assets were their clothing. The place of business of a pawnbroker is called a pawnshop.

A pawnbroker evaluates the value of any possession that is offered as a pledge for a loan. The amount of the loan is a percentage of the item's value, and the pledge is kept by the pawnbroker for the agreed period of the loan. If the money is repaid at any time during this period, along with the fee, the customer receives the pawned item. If the time elapses without repayment nor fee, the pawnbroker is allowed to sell the pledged item to recoup the amount of his loan. As a result, pawnbrokers have a large number of formerly pawned objects offered for sale. Pawnbrokers can also purchase an item outright for cash with no repayment expected; these can be immediately offered for sale. Some items (depending on the item and the Pawn Shop) may have to be held while it is checked against the Police system. Depending on the state, that hold can be anywhere from 21 to 30 days.

It has been noted that since pawnbrokers often buy goods from strangers with few questions, some unscrupulous pawnbrokers act as fences. Pawnbrokers have claimed that few stolen items end up in pawnshops, especially in some countries where pledgors are required to show government-approved identification when making a loan. It is easier, the pawnbrokers say, for a thief to dispose of their goods through an outlet such as eBay or flea markets where items being sold are not subject to government regulations regarding the acquisition and sale of personal property.

The pawnbroker's symbol, three balls suspended from a bar, is pictured at the top of this page.

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