A pawn shop is a business that offers loans in exchange for personal items as collateral. Customers can bring in items like jewelry, electronics, or musical instruments, and the shop evaluates 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, the pawn shop keeps the item and may sell it to recover the loan amount. This process allows people to access quick cash without needing a credit check, making it a popular option for those in need of immediate funds.