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Loan Rules Question
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Sin Swarm
Center for Advanced Studies
Gallente Federation
#1 - 2012-06-20 21:05:23 UTC
So in regards to loans. If you received a loan for 10 bil @ 10% for 1 month. You owe the investor 1.1 bil in 30 days. But what if you reached your goal WAY quicker than you expected and are able to pay out after only a week. Do you get penalized for that, or is that completely ok to pay out early?
Hans Tesla
RigWerks Incorporated
#2 - 2012-06-20 21:11:32 UTC
Sin Swarm wrote:
So in regards to loans. If you received a loan for 10 bil @ 10% for 1 month. You owe the investor 1.1 bil in 30 days. But what if you reached your goal WAY quicker than you expected and are able to pay out after only a week. Do you get penalized for that, or is that completely ok to pay out early?

Are you asking if you can pay a reduced amount in interest since you're only keeping the loan proceeds for a week or do you intend to pay them 1.1B after a week?

I doubt any investor would say no to the second option.

Head Rigger In Charge
Tom Hagen
Twilight Empire
#3 - 2012-06-20 21:21:47 UTC
There is no real rule about it, just make sure that you honor what you have said you would pay. If you said you gonna pay 1.1 Bil people expect you to pay it.
But you can also be clear about that you want to reserve the right of an earlier buy back. Then it is up to the investor if they want to agree to your terms.
Sin Swarm
Center for Advanced Studies
Gallente Federation
#4 - 2012-06-20 21:30:23 UTC
I mean pay the Full 1.1bil 3 weeks early.
Hans Tesla
RigWerks Incorporated
#5 - 2012-06-20 21:43:19 UTC
I don't imagine there is a person in EVE that would object to that.

With that said, why not hold onto the money and use it for the remaining three weeks? You would get a higher return out of your loan.

Head Rigger In Charge
Mme Pinkerton
#6 - 2012-06-20 22:19:47 UTC  |  Edited by: Mme Pinkerton
It's generally ok to pay a loan back early (as long as you pay interest for the full month), however you might see some criticism along the following lines:

(1) Did you really earn the money to repay the loan with your stated business plan? or did you acquire it from some other source (maybe had it all along, even)?

(2) Unless you have to quit the loan due to RL issues, burnout, .... it is usually not rational to pay back early.
Did you actually take out the loan to boost your income earning ability (why do you not take full advantage of it in that case?) or was there some other reason?

If you create the impression that you might pay back your loan early to speed up a rep-grinding process, expect to catch some flak for it. Otherwise you'll be fine.

PS: http://i.imgur.com/RbTfu.jpg !

An IPO guide (David H'Levi) | Towards a Positive Argument For Investing (RAW23) | Freighter Operations 101 (Kazuo Ishiguro) | Dominion market analysis (Akita T)
Lady Skrillex
XTELLARIX
#7 - 2012-06-21 03:23:47 UTC
No shame in paying back early, I do it all the time. I mean, why wait for your money; when you can have it now? Big smile
Vaerah Vahrokha
Vahrokh Consulting
#8 - 2012-06-21 07:34:12 UTC
You can negotiate *before hand* a discount for early completion.

Once the bond has started, then do whatever. Make 1 trillion in 1 day, you still pay full interest even if you pay after 3 days.

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Mme Pinkerton
#9 - 2012-06-21 08:02:17 UTC  |  Edited by: Mme Pinkerton
Lady Skrillex wrote:
No shame in paying back early, I do it all the time. I mean, why wait for your money; when you can have it now? Big smile

you aren't one for "subtle" hints, are you?

Sin Swarm contacts page 1
Sin Swarm contacts page 2

http://eveboard.com/pilot/Lady_Skrillex (screenshot)
http://eveboard.com/pilot/Sin_Swarm (screenshot)

https://forums.eveonline.com/default.aspx?g=posts&m=1509246#post1509246

tl;dr I claim that Lady Skrillex and Sin Swarm are both alts of one TEST main.
Posting on alts is cool but alt-posting is not.

"oh my god, character assassination, defamation, it's just as likely that I am your alt, ..."
yeah, have fun.

edit: https://forums.eveonline.com/default.aspx?g=posts&m=1513485#post1513485

An IPO guide (David H'Levi) | Towards a Positive Argument For Investing (RAW23) | Freighter Operations 101 (Kazuo Ishiguro) | Dominion market analysis (Akita T)
Iosue
League of Gentlemen
The Initiative.
#10 - 2012-06-21 14:20:23 UTC
These are called prepayment penalties IRL. No RL lender would have a problem with you paying the full loan plus interest for the full term early and I can't see anyone in EVE complaining either. You're accelerating their ROI and allowing to redeploy their capital earlier than expected, which should benefit them. Generally these types of issues are discussed before entering into the loan contract; remember that for RL where it really counts.
Aina Sasaki
Garoun Investment Bank
Gallente Federation
#11 - 2012-06-24 10:56:12 UTC
You can make your own rules. Whether or not anyone accepts them and invests in you is an entirely different story. With that said, I don't think many people would have a problem with this. Personally though, i'd rather keep things on schedule in order to make sure the borrowed ISK is used to its maximum potential.

- Rei