ELi5 The concept of pawning an item/ the concept of pawning

Question

ELi5 The concept of pawning an item/ the concept of pawning

In: Other

Answer 1

You give someone an item that is worth $10. They say that you have 2 weeks (time varies) to pay them the $5 they will loan you + the $2 handling fee or they get to keep your $10 item.
If you don’t pay them back they made $5 if you do pay them back they made $2.