Market Discussions

The interest is pretty high so it seems a bit too good to be true.

Would you be willing to give out API to investors or a third party?

(I'm not interested, just tryina help)

I think he means 20% interest total, so what would probably be something closer to 10% interest per month

Its not the interest were worried about, its the collateral, or rather, the lack of collateral. Simply offering high interest does not mitigate this risk.

You may want to show what the collateral is and its rough location.

With collat you stand much better chance of getting the money, but if its in low null it has less value as someone has to either move it of find a buyer, if in mainland highsec use evepraisal and give folks an idea of what they will be holding.

The collateral doesn't cover the loan amount: 2180m on evepraisal, 1952m if you ignore the fitted rigs.

You need to raise that to 2750m (110% of the loan value).

The interest rate, at 3.5% per month, is probably a shade lower than it needs to be given the small size of the loan, the short duration and the low-sec collateral. I'm not sure anyone would bite for less than 100m per month (4%).

I'm using the buy value, you're using the sell value.

If someone invests in this and you default, you're expecting them to move two battleships from low-sec to Jita, babysit sell orders to liquidate it all and be happy with 2800m, minus taxes and 241m lost from the fitted rigs.

That liquidation would fall short of the loan amount, would certainly not cover the interest owed and doesn't justify the risk and effort involved in the process.

Would you take up that deal in the hope of maybe making 200m in 2 months time?

so youd rather have me jack up the interest, jack up the collateral and then what? i contract it all over to someone who would just walk away with it? i dont think so.

The way i see it, is i put up a contract with the collateral at the allotted amount im asking for, no interest included. When the due date is up, i rebuy the contract priced at what was loaned to me + interest on top of it. If i default, no one loses anything and i probably never get another loan.

I understand the whole risk mitigation, but stop trying to eliminate the risk and pass it all over to me. Either take the risk, or dont.

You are welcome to use a trusted third party at your own expense, which is what most people do in order to mitigate that risk. However, such arrangements are quite expensive, when compared to the small size of this loan.

Yes, that's exactly how it should be done, assuming no trusted third party is involved.

The person giving you the loan has then exchanged 2500m for items that you claim are worth 2800m (at Jita sell price).

But those 2800m of items are in low-sec and consist of rigged battleships and fittings. The rigs are worthless in this situation and should not be included in the valuation. The items are not in Jita or anywhere near it, so you should not be using Jita sell price for the valuation. Moving these items from several jumps in to low-sec over to Jita to liquidate them would not be a risk or effort free exercise, if it were you would probably have done this yourself.

So you are offering collateral that can optimistically be valued at 2450m (Jita sell) or pessimistically valued at 2150m (Jita buy) and will not be straightforward to liquidate either way. So the person extending you the loan would lose something in the event of default.

You have no reputation to lose, so that's not really a factor.

Scammers, liars and reprobates of all sorts can get a collateralised loan whenever they want. Trust is not a factor, providing the collateral covers the loan.

The reason why collateralised loans are offered at such low rates of interest is because there is no significant risk involved.

My suggestion to you would be to move these items to Jita yourself. Once they are there, either sell them and use the isk to fund your venture, or seek out a loan using them as collateral based on the mid-point between Jita sell and Jita buy (minus the rigs) at 4%. This will give you the best chance of success.

As it stands, sensible investors will avoid this like the plague.

Thank you Zep Grams for taking the opportunity.

Your loan will be returned on December 20th as stated in the original post.