INVESTING - Frequently Asked Questions

How much return will I make on my money?

The total return you can make on a loan you fund is 16% over a 4 month period.

How is the interest rate determined?

We currently have the interest rate fixed at 4% per month (48% APR) for all loans.

How is the time length of the loan determined?

We currently have the term of all loans fixed at 4 months.

Why do I need to setup and link a Dwolla account?

Dwolla is a fast, easy and secure way to electronically transfer money. We have integrated Dwolla into YouPawn to make transferring money as easy and affordable as possible.

Why do I need to specify my tax ID, account type and name?

As an investor, you will be required to report any earnings to the IRS. We require you to provide us with this information so that we can comply with Federal and State laws.

What if the pawner doesn't accept my offer?

If the pawner does not accept your offer, you will be given the chance to make a new offer. You can continue doing this until the offer you make is accepted by the seller.

How Does Investing Work?

Step 1: Find An Item/Person to Invest In Browse our item listings and find a listing that looks good to you. Step 2: Make An Offer Make an offer for the amount of money you’re willing to loan for a given item Step 3: Wait For Offer to be Accepted Once your offer is accepted, we’ll transfer the money from you to the pawner via our payment partner Dwolla. Step 4: Get Cash At the end of the loan term, you’ll either receive your loan back in full (plus interest), or the collateral (if the pawner no longer wants their item).

How do I know how much to loan?

Your loan value is based on the resale value of the collateral (item) offered. This is determined by qualified appraisal specialists that work for YouPawn, using a variety of factors including condition and marketability.

How much can I make?

There’s no limit on how much you can make. Give us a try and if you like your return, come back and repeat the process again and again.

How is my loan delivered to the borrower?

The loans are delivered via our partner

Who keeps the collateral (item) while the loan is being paid back?

YouPawn will store your item in our secure facility until your loan is paid back.

What if the person defaults on the loan and I don’t get paid back?

You then become the rightful owner of the item and YouPawn will ship it to you.

What’s the difference between a personal investor and a business investor?

For our purposes, there's no difference. We treat all investors the same.

Can I select multiple boxes under the investment risk section of the investor application?