When a person brings an item to a pawn shop it is considered what kind of transaction?

When a person brings an item to a pawn shop, it is considered a pawn transaction. In this arrangement, the individual offers the item as collateral for a loan, receiving cash based on the item's appraised value. If the loan is repaid within the agreed timeframe, the item is returned; if not, the pawn shop retains ownership and can sell it.