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[SERVICE] Loans and micro loans available
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Tonsof Gun
Dirty Rats
#1 - 2013-06-03 13:05:18 UTC  |  Edited by: Tonsof Gun
I'm starting a loan service in an attempt to make use of my liquid isk surplus.

I currently have 15bil available to lend.

Minimum loan amount is 500mil, maximum is currently 5bil.

Interest will be charged at a flat rate on the amount borrowed based on the length of the loan, as follows:

1 week - 2%
2 weeks - 2.5%
3 weeks - 3.25%
1 calendar month - 4.25%

Loan applicants must provide collateral to cover 110% of the loan value, this can be in the form of any widely traded item/ship and must be located in Jita 4-4. I will accept BPOs as collateral, but they will be valued at NPC price unless very highly researched. If the loan repayment date arrives and I have received no communication from you, the items will be sold immediately following downtime the following day.

I also offer the ability to extend a loan (at my discretion) or for you to repay earlier than agreed for a reduced interest rate.

For extensions you must contact me at least 48 hours prior to your repayment date with your request, if agreed you will pay interest only on the original repayment date, and the full amount plus interest for the second term on the new repayment date. You may extend your loan multiple times, but the total loan period cannot exceed 6 weeks. The exception to this rule is in the case of an original agreement for one calendar month, you may extend by a further calendar month.

Early repayment is simply that - if you request a month long loan and find that after 2 weeks you are ready to repay, contact me and I will make arrangements for this. Your interest paid will be the appropriate rate plus 0.5%, so in our example it would be 3%.

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Tonsof Gun
Dirty Rats
#2 - 2013-06-03 21:18:38 UTC
*Reserved*

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loyalanon
The Conference Elite
The Conference
#3 - 2013-06-04 00:19:51 UTC
Why wouldnt I just sell my stuff instead of providing collateral for a loan if I needed ISK?
Tonsof Gun
Dirty Rats
#4 - 2013-06-04 05:54:51 UTC
loyalanon wrote:
Why wouldnt I just sell my stuff instead of providing collateral for a loan if I needed ISK?



The same reason people use pawn shops - you need a short term loan but you want to keep your stuff, so you simply hand over your stuff for the duration of the loan and at the end of the loan period it's returned to you when repayment is made.

I wish EvE was a game where I could offer unsecured loans, but I'm sure you realise that would be a swift road to bankruptcy Smile

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Tonsof Gun
Dirty Rats
#5 - 2013-06-04 23:13:08 UTC
Have a lead on a 5bil loan, 15bil still available

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Tonsof Gun
Dirty Rats
#6 - 2013-06-05 17:30:48 UTC
15bil available for loans, online now.

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Tonsof Gun
Dirty Rats
#7 - 2013-06-06 15:44:22 UTC
Need a payday loan? I can't help you, but if you want to borrow some Isk then I'm your man.

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Tonsof Gun
Dirty Rats
#8 - 2013-06-07 18:40:03 UTC
Bump it up

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Tonsof Gun
Dirty Rats
#9 - 2013-06-09 14:47:55 UTC
Who wants my money?

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Tonsof Gun
Dirty Rats
#10 - 2013-06-12 21:57:04 UTC
14bil still available

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Tonsof Gun
Dirty Rats
#11 - 2013-06-15 06:37:35 UTC
Agreement completed - now 15bil available

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Anhenka
The New Federation
Sigma Grindset
#12 - 2013-06-15 06:44:51 UTC
So you want things worth more than your lending them, and your charging them for the pleasure of holding onto it?

In nearly any situation, it would be better to just flat up sell the item and then buy it back when your finished, except in rare occasions where the item in question is valuable but difficult to sell, and the person is in need of quick cash.

Except I would think most people taking advantage of that would just take the 10% hit and never come back for the item, since they would have to pay at least 2% interest on the item in question, leaving only an 8% potential return on reacquiring their hard to sell item. No interest paid if you don't come back for it, unless you charge the first interest installment up front.


Business model needs some tweaking man.
flakeys
Doomheim
#13 - 2013-06-15 07:07:31 UTC
Anhenka wrote:
So you want things worth more than your lending them, and your charging them for the pleasure of holding onto it?

In nearly any situation, it would be better to just flat up sell the item and then buy it back when your finished, except in rare occasions where the item in question is valuable but difficult to sell, and the person is in need of quick cash.

Except I would think most people taking advantage of that would just take the 10% hit and never come back for the item, since they would have to pay at least 2% interest on the item in question, leaving only an 8% potential return on reacquiring their hard to sell item. No interest paid if you don't come back for it, unless you charge the first interest installment up front.


Business model needs some tweaking man.





So you're saying he should loan out isk without collateral or less valued collateral.


You don't quite know how eve trust with strangers works do you ?

We are all born ignorant, but one must work hard to remain stupid.
Anhenka
The New Federation
Sigma Grindset
#14 - 2013-06-15 07:25:51 UTC  |  Edited by: Anhenka
flakeys wrote:



So you're saying he should loan out isk without collateral or less valued collateral.


You don't quite know how eve trust with strangers works do you ?


Well obviously collateral is a basic necessity, but under his current system the person receiving the loan has minimal reason to actually come back for their item. The longer the loan requested, the greater the interest payment required + return of the original loan and thus the less between what he received as load disbursal and the value of the item he pawned off.
A month long loan has to pay the original 100% + 4.25% to get back an item worth 110%, a mere 5.75% diff.
_____________________________________________________________________________________________________

What it lacks is an incentive for people to return for the item. Now say there was a secondary option where a person placed down an item worth 125%, and as long as they returned for it within a month the total cost to them was only say 25 million, regardless of the size of the original loan. The higher % increases the penalty for not returning, while the much lesser payment required is the customer benefit for providing additional collateral.
______________________________________________________________________________________________________

Stuff like that. The business model is already solid, but lacks any real reason why a person might use it instead of selling, or in the case of high value hard to move items, dumping it on him and taking a slight loss in exchange for getting rid of it.
Tonsof Gun
Dirty Rats
#15 - 2013-06-15 10:05:21 UTC
The reason I set collateral at 110% of the loan value is simply to allow for changes in the market value of the collateral item and so that there is some incentive to come back for the item and pay the interest, rather than leave me with the item.

I could ask for 125% but I think that would put people off the service, I'm sure there would be some trepidation in handing over 6.25bil of collateral for a 5bil loan for example.

Examples of situations where this service might be a better option than simply selling your items -

You have a ship with expensive rigs, it would take time to sell it through contracts and you don't want to destroy the rigs to sell the hull on it's own. Although I don't generally take rigs into account when valuing collateral, it allows you to borrow against the value of your ship.

If you have a stock of items you've bought for market speculation you can borrow against them at the current value and still hold on to them for when their value increases.

The service is obviously open to anyone, although I reserve the right to refuse certain items as collateral and I will agree the value of your collateral with you before the loan is arranged

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Xalia Roland
Creepy Window Lurkers
#16 - 2013-06-17 03:08:42 UTC
Hi!

I'm interested in a 5b loan.

Send me an eve-mail and we can discuss this?
Sabre Rolf
Doomheim
#17 - 2013-06-17 05:08:26 UTC  |  Edited by: Sabre Rolf
flakeys wrote:

So you're saying he should loan out isk without collateral or less valued collateral.


how about the same or 100% maybe?

110% gives the person who is offering the loan the oportunity to scam, wich is fine for Grendell or VV but a random Forum alt? idk.
pretty much the same risk as asking for a 1,5b uncollaterized loan.
Tonsof Gun
Dirty Rats
#18 - 2013-06-17 07:23:18 UTC
Sabre Rolf wrote:
flakeys wrote:

So you're saying he should loan out isk without collateral or less valued collateral.


how about the same or 100% maybe?

110% gives the person who is offering the loan the oportunity to scam, wich is fine for Grendell or VV but a random Forum alt? idk.
pretty much the same risk as asking for a 1,5b uncollaterized loan.


There is far more benefit for me in establishing a well respected service than there is in making off with the 10% over collateral. Obviously this is EVE and it's hard to trust those that you do not know, I could offer a third party to hold collateral but this simply overcomplicates things and adds extra costs.

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Tonsof Gun
Dirty Rats
#19 - 2013-06-19 18:07:11 UTC
Bumping this up, currently 15bil still available.

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Tonsof Gun
Dirty Rats
#20 - 2013-06-25 20:03:03 UTC
Haven't-bumped-this-for-a-while bump

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