Is there a difference between a consignment bank and a pawnshop?

There is a difference. For luxury goods, consignment is to help you sell, pawn is to recycle, consignment is to set your own price, which can be more suitable, or you can send idle goods directly, and the price is more controllable. There are mainly different natures, different profit methods and different business objects.

1, with different properties. Consignment banks are mainly engaged in consignment of second-hand goods, which belongs to general business activities; Pawnshop is a special industrial and commercial enterprise with capital lending as its business activity. Consignment business is a trust trade business, and pawn business is a special financial business.

2. Different ways of making profits. Consignment banks use the procedure of collecting goods after consignment as a means of profit; Pawnshops make profits by issuing loans and charging interest and fees. Pawnshop Pawnshop, also known as Pawnshop, is an informal marginal financial institution that specializes in issuing pledged loans. It is a market intermediary organization which is mainly based on lending and supplemented by commodity sales. Consignment bank is an intermediary agency for consignment of goods, which is responsible for accepting consignment business entrusted by the owner and selling it on behalf of both parties through signing relevant service agreements. According to the consignment agreement, the consignment bank does not enjoy the ownership of the goods, but only enjoys the management right of the goods during the consignment period. The ownership of the consigned goods still belongs to the principal, and the consignment bank can charge a certain service fee to the principal after completing the entrustment.

3. Different business objects. Consignment means that the owner entrusts a consignment bank to sell on his behalf; Pawning is when the owner mortgages the goods to the pawnshop. Pawning is to get some money on the spot. The two parties signed relevant service agreements. According to the agreement, the consignment bank has no ownership of the goods, only the management right of the goods during the consignment period, that is to say, the ownership of the goods has not been transferred. The consignment bank only charges a certain service fee after the goods are sold. No buyouts, no on-site loans. During the pawn period, the ownership and management of the goods were transferred from the original owner to the pawn shop.