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Collateral Question
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Vile Belief
Scarlet Trading
#1 - 2013-04-29 17:21:00 UTC  |  Edited by: Vile Belief
Hello!

I've just returned back to the game to pick up my trading efforts again after a good run a year back. However, I'm a bit short of ISK lately (restocking my character again) and I may start a loan soon. As this would be my first public loan, I had some questions about providing collateral if someone could help find me some answers.

In the real world, you can acquire a bank loan with anywhere between 20% to 30% collateral of the full amount of loan needed. So, if I was to borrow 100,000 ISK, I would need to provide 30,000 ISK in collateral assets to have a good chance of securing that loan. Does the same percentages still apply in EVE Loans?

I was thinking about securing 1 billion in investment with 30% collateral in the form of a few ships. I just don't know if providing 300M ISK is good enough collateral or not for EVE standards or should I go higher to help protect my potential investors?


Thanks for the help!
Umar Umarhabib
Doomheim
#2 - 2013-04-29 17:27:30 UTC
Vile Belief wrote:
Hello!

I've just returned back to the game to pick up my trading efforts again after a good run a year back. However, I'm a bit short of ISK lately (restocking my character again) and I may start a loan soon. As this would be my first public loan, I had some questions about providing collateral if someone could help find me some answers.

In the real world, you can acquire a bank loan with anywhere between 20% to 30% collateral of the full amount of loan needed. So, if I was to borrow 100,000 ISK, I would need to provide 30,000 ISK in collateral assets to have a good chance of securing that loan. Does the same percentages still apply in EVE Loans?

I was thinking about securing 1 billion in investment with 30% collateral in the form of a few ships. I just don't know if providing 300M ISK is good enough collateral or not for EVE standards or should I go higher to help protect my potential investors?


Thanks for the help!


Eve =/= Real Life because there is no legal / credit consequences if you default, no deficiency judgement, liens, etc.

So unfortunately you would need to provide 100 - 110% collateral.
Arronicus
State War Academy
Caldari State
#3 - 2013-04-30 07:27:08 UTC
Collateral is generally only neccessary for larger loans, and securing lower interest rates on smaller loans. You can reasonably achieve a 1-5billion loan, without collateral, but you'll pay a higher interest rate, and have to sell yourself better. Most higher end loans, without a very good reputation, or trusted broker (who you will be paying), don't happen. When collateral is supplied, it is generally in the 80-120% range, depending on the goods supplied, and the agreement.

Once again, 1-5bil loan, can get w/o collateral, but higher interest rate, and more difficult.