A Business Created with Heart

When you hear the word "pawnshop," do you imagine a dark, dreary basement hidden away on some obscure street corner? People slipping in discreetly, embarrassed about having to be there? It doesn’t have to be that way at all. In the Maxima XX building on Tartu’s Kalda tee, you’ll find Kullake – a pawnshop that more closely resembles a stylish jewelry store than a typical pawnshop.

A red carpet rolled out, bright tones and wonderful lighting, and the aroma of good coffee wafting in the air. This is how you might describe the reception at the Kullake pawnshop, where the owners, Tarmo Kaldam and Marian Tobro, assist visitors. Their personal and warm approach is evident from a distance.

Burnout Led to a New Business Idea

Tarmo Kaldam is by no means a newcomer to this industry. Before founding Kullake, he spent eighteen years working in the Luutar pawnshop chain, where he was also one of the co-founders. Tarmo recalls that when he entered the pawnshop world in 2006, most such businesses were located in basements and tucked away out of sight. “The more metal there was, the safer it felt,” says the founder and owner of Kullake. “It was safer mainly for the owners, because times were different back then. My predecessors started out in the ’90s, when it was clear there were plenty of ill-intentioned individuals, and you had to protect your business from them. That’s how pawnshops initially got a bad reputation.

The Luutar pawnshop also stood out from the rest. It was much more open and customer-friendly, located above ground with no bars on the windows. However, burnout eventually became unavoidable. After such a lengthy experience, Tarmo took a short break, during which he felt he had lost himself and needed to rediscover his direction. It was this long path of self-discovery that led him to the idea of creating a completely unique, innovative, and modern pawnshop – one that people would genuinely want to visit. It had to be located in a busy area, be bright, colorful, and a pleasant place for anyone who needs its services. With 18 years of experience under his belt, a well-rested and newly energized Tarmo realized more than ever what was missing in the Estonian market.

The Name “Kullake” Came About by Chance

And so, in March 2023, Kullake took shape. The support of his devoted partner, Marian, was one of the milestones that gave this determined man even more inspiration. Now they both work at the pawnshop on Kalda tee 15, which has become both their job and their passion. Marian has settled in behind the counter, serving customers, while Tarmo, as the founder of the company, is responsible for its operation. Like in any small business, they have to pitch in with everything – being the cook, baker, and welder all at once, which is precisely part of its charm. For example, today Tarmo brought a ladder along because he needed to check the electrical system. This kind of variety appeals to his slightly restless nature, as no day is ever the same as the last.

But where did the pawnshop name “Kullake” come from? Marian and Tarmo both smile and explain that they can’t take credit for it. “Our IT specialist was the one who came up with the name Kullake,” Tarmo points out. Though Tarmo himself had a few options in mind, they were much more masculine and rugged.

Marian adds that the name Kullake brings a certain softness right from the start, which suits their business model very well. Moreover, Kullake can be associated with gold, which is the hottest commodity at their pawnshop.

The Gold Counter Sparked Customer Interest

Does Tarmo remember what the first day of work at Kullake was like? Thanks to his previous experience, he knew exactly what to expect. He was convinced that no one would come on the first day. His prediction was spot on, as that’s exactly what happened. For quite a while, things were quiet at the start, but he had the benefit of prior experience and knew that eventually things would change. This time, he wasn’t wrong. The more time passed, the more word spread about the new, modern pawnshop. Almost two years after opening, they can’t complain, because they certainly don’t lack customers.

In the beginning, people were attracted by the long gold counter in the middle of the pawnshop, which made it look more like a jewelry store. By now, the large counter has been removed due to lack of space, as they needed more storage to keep customers’ items. At the time of opening, a storage area wasn’t a priority; they needed something eye-catching to draw visitors in.

“A long gold counter in the middle of the room helped spread the word about us and got people talking,” Tarmo says confidently. The gold counter is gone now, and the main focus has shifted to loan customers, who form the core clientele of Kullake.

Warm, Personal, and Nonjudgmental Approach

Marian believes that the secret to Kullake’s success is its personal touch. They always find a solution tailored to the customer’s needs. “I think that in every business where clients are greeted by the owner themselves, the reception is always warmer. The customer can sense this. Some people open up so much that I can end up sitting with them for an hour, listening to their entire life story. I believe that other larger chains can’t give one customer that much attention, simply because they don’t have the time,” says Marian, the hostess of Kullake, describing her work behind the scenes. At Kullake, they’re like part-time psychologists or psychiatrists, without passing any judgment.

Tarmo agrees with Marian. “A person comes to us with a problem, eyes down. They feel a bit ashamed and don’t want anyone to see them. We try to eliminate that unnecessary shame with our open style of service. We want to find solutions to different situations. One person comes in quickly without any shame, because visiting a pawnshop is normal for them. Another may have driven an S-Class Mercedes for half their life, needs money for tomorrow’s lease payment, but doesn’t want to come to a pawnshop that’s so visible. Right now, we’re thinking about how to adjust our concept so that person can also be served by us.”

0% Interest on Your First Time

The most popular item at this family-run pawnshop is gold, but people also bring in mobile phones, laptops, and various tools for safekeeping. This service is called a pawn loan, and the first time you use it, the interest rate is 0%. To get the loan, you have to pawn an item. “Essentially, we’re a micro-bank that finances the customer’s day-to-day needs with microloans. You can take out a loan starting from 15 euros,” Tarmo explains about Kullake’s services.

Does it often happen that a customer doesn’t repay the loan and the pawned item remains with Kullake? Tarmo confirms that it’s rather rare, because most items are reclaimed. Marian supports Tarmo and adds that gold jewelry is almost always reclaimed. If something does remain with Kullake, it’s more likely to be electronics.

If it does happen that someone can’t repay the money and the pawned item ends up staying at Kullake, it’s not a problem. The customer doesn’t even need to notify them. The owners keep track, and if the customer hasn’t come for their belongings within a certain period, those items go up for sale. After all, you don’t just have to take out a pawn loan at Kullake; you can also buy items or bring them in for direct sale. Everything depends on the customer’s wishes and needs.

The contract period is usually up to 30 days. During this time, you should buy back your items from Kullake. Naturally, you can opt for a shorter contract if you prefer. Over time, Kullake has gained loyal regular customers, who are greatly valued and appreciated there.

Hopes to Expand Elsewhere Soon

The days when pawnshops were frequented only by people who were struggling or in dire circumstances are long gone. “It’s so interesting to see that more and more successful people are coming to us. They tell us about their background—doctors, artists, musicians, entrepreneurs,” Marian lists.

Often their problem is that they suddenly need a larger sum of money, with no way to get it. Maybe their car breaks down, or unexpected dental or vet bills come up. That’s when Kullake steps in, offering a helping hand in difficult times. One advantage over an SMS loan is the fact that there’s no record left anywhere, which can also help clients later on, for instance, if they need to get a bank loan.

The owners hope that in the future, Kullake pawnshops will appear in other Estonian cities as well. They have the knowledge and experience to run this type of business, but they need investors. Tarmo is convinced that in time, investors will join them, allowing Kullake to spread its wings beyond Tartu. They certainly can’t complain about a lack of work already—December has far exceeded the entire staff’s expectations.

An Essential “Straw” of Support

Neither owner has managed to fully avoid prejudice. When the topic of a pawnshop comes up among strangers, they sometimes receive sideways looks. They’re used to it by now. But once they show a few pictures or a video of Kullake, the initial skepticism disappears immediately. Passersby don’t perceive Kullake as a pawnshop, but rather as a stylish jewelry store—a definite advantage.

Both are motivated in their work by the gratitude of their customers. Often, those in need have no one else to turn to—sometimes they’re lonely souls who just need someone to listen. In summer, the Kullake staff is inundated with garden produce, and in winter, people bring sweets. “It warms the heart,” Marian says, delighted at the chance to help others. Sometimes she even sheds tears along with the customer. Tarmo also finds motivation in being the last resort for many people. But not a bad or self-serving one—rather, a necessary lifeline. Confidentiality is especially crucial for clients, as Kullake never shares their personal data.

For both of them, it’s important to dispel the outdated and negative stereotype associated with pawnshops, because Kullake has nothing to do with that. Here, every visitor is greeted warmly, and a solution is found that suits them best.

Come and see how Kullake can help you!

Text by: Jaanika Elias