A pawn shop is a business that offers loans in exchange for personal items as collateral. Customers can bring in valuables such as jewelry, electronics, or musical instruments, and the shop assesses their value. If the customer agrees to the loan terms, they receive cash and have a set period to repay the loan to reclaim their item. If the loan is not repaid within the agreed time, the pawn shop keeps the item and may sell it to recover the loan amount. This process allows individuals to access quick cash without needing a credit check, making it a popular option for many.