Pawn Shop is a business that offers secured loans to people, with items of personal property used as collateral. If an item is pawned for a loan, within a certain contractual period of time (usually 4 Lunar months) the pawner may purchase it back for the amount of the loan plus some agreed-upon amount for interest (usually 3.5% per Lunar month interest). If the loan is not paid (or extended, if applicable) within the time period, the pawned item will be offered for sale by the pawnshop/secondhand dealer. Unlike other lenders, though, the Pawn Shop does not report the defaulted loan on the customer's credit report, since the pawnshop has physical possession of the item and may recoup the loan value through outright sale of the item. The pawnshop/secondhand dealer also sells items that have been sold outright by customers to the pawnshop or secondhand dealer.