Maine Pawn & Gun Inc.

Maine Pawn & Gun Inc. is seeking funding to keep up with the massive demand for collateral pawn loans our customers are seeking. We buy, sell, trade, and do pawn loans on quality items such as guns, gold, silver, coins, higher-end tools, and much much more.  A typical pawn loan is usually from $50 to $500 and we receive an item as collateral that is generally worth twice the amount of the pawn loan. Larger loans are done against items such as motorcycles, ATVs, side-by-sides, cars, trucks, and other large tools or equipment with title and item in our possession and again generally at about 50% of item value.  Loans we do are obviously well collateralized, 30-day terms with as many renewal options as the customer would like. Typical customers renew between 3 and 5 times before retrieving their collateral with our longest loan being a little over 3 years old.  There is roughly a 20% default rate, in which case we just sell the item to recover capital, interest due, and a little more.  Most items sell within 30 days of default.

Why do we need money you ask? You have the perfect business you say! Yes, we do for the most part, however, we are now being asked to do 2 to 3 times the amount of loans that we normally would do. We just don't have the capital to do all these loans. WE ARE LOSING VALUABLE OPPORTUNITIES EVERY DAY because we have to turn people away!  Demand for loans is now roughly 2-3 times our normal sales revenue and we would like to capture all this business. We would like to pay 2% monthly on a line of credit. The first 40k will start collecting 2% immediately, and the next 60k as we loan it out. This money will be used ONLY to do pawn loans.

We would be willing to pay 2% on the full 100k immediately if it all comes from a single entity however the usage would be slightly different than if received in blocks.

We are 4 stores, incorporated in 2022, located in Maine and New Hampshire with total revenues in excess of $1.5 million in 2022 and a net profit of slightly over 10%. Our pawn loan balance is currently at the $40,000 level but could easily be 3x this.