Pawnbroker

A pawnbroker is a business that lends money against items left as collateral, which the borrower can redeem by repaying the loan, and which the pawnbroker may sell if the loan isn't repaid.

Pawnbrokers are usually regulated separately from secondhand dealers. The distinction matters for watch dealers because buying outright and lending against a watch can fall under different rules, and some local and federal rules treat pawn transactions differently.

If you ever structure a deal so the seller can buy the watch back, check whether that turns it into a pawn transaction where you operate.