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Where's the Microlending?
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warzonetemp
Aliastra
Gallente Federation
#1 - 2013-07-27 21:11:47 UTC
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?
flakeys
Doomheim
#2 - 2013-07-27 21:19:53 UTC
warzonetemp wrote:
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?



In the old days you had loans for those sums.However in today's world of eve grinding a few 100 M is peanuts.Those who can't manage that are usually the ones who have no collateral either.There have been numerous people trying their hands on doing micro loans without collateral , i know not one who continued it because of the high rate of defaults.

We are all born ignorant, but one must work hard to remain stupid.
Rhivre
TarNec
Invisible Exchequer
#3 - 2013-07-27 21:20:16 UTC
Because, 10 to a couple of hundred million is usually not what people have a problem getting.

There is this thread with 500m+ micro loans
https://forums.eveonline.com/default.aspx?g=posts&t=169349

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Akita T
Caldari Navy Volunteer Task Force
#4 - 2013-07-27 21:41:50 UTC
warzonetemp wrote:
Anyone know why the market seems so geared on large billion isk loans versus micro-lending?

Even if you do it in a nearly completely risk-free way (collateral and such), sadly, the answer is most likely "poor effort to benefit ratio".

To begin with, people who would need micro-loans seldom have enough things to put up as collateral.
When they do have something to put up as collateral, it's not usually something which can easily be directly sold (and later repurchased), so why bother with micro-loans at all if you can just use the market.
Doing it without collateral is way, way too risky, and just begs for bankruptcy, so it's right out.
Doing it with collateral EITHER
* has a tiny potential target demographic (in people that have something they can't easily sell and repurchase), OR
* needs to offer such low rates to make it more attractive than selling and re-buying later that it's no longer attractive to the one offering the loan
Plus, of course, there's the effort of assessing the collateral's value, handling the transfer contracts, keeping track of which collateral belongs to whom, reminding people they need to pay stuff back or selling their collateral if they're too late, handling the whining of "but I had a RL issue, couldn't login, why didn't you just wait just one more day", etc.

Basically, the situations in which micro-loans actually make sense to both parties are way too infrequent to be easily noticeable.

Akita T evewiki profile | | | Build your own EVE-ready PC
Vera Algaert
Republic University
Minmatar Republic
#5 - 2013-07-27 21:52:38 UTC
I agree with flakeys - the window of time where that amount of ISK is really useful to the borrower but not easily obtainable by other means is extremely small if it exists at all.

Asking for an amount that you could easily earn within 1-2 weeks by investing a modicum of effort does not make me say "Finally a borrower who understands opportunity cost!" but "This guy seems to be a stranger to the idea of delayed gratification. Red flag."

.
warzonetemp
Aliastra
Gallente Federation
#6 - 2013-07-27 22:15:50 UTC
Thanks for the info,

I was wondering why there's no market for small loans.

I'm clearing 600 mil a week on trading, so it's not a big deal to me, but just weird that no one does that kind of lending in Eve.
Felicity Love
Doomheim
#7 - 2013-07-27 22:53:20 UTC
Yep, no "Wonga" in EVE.

Just PLEX.

"EVE is dying." -- The Four Forum Trolls of the Apocalypse.   ( Pick four, any four. They all smell.  )
Vaerah Vahrokha
Vahrokh Consulting
#8 - 2013-07-28 01:56:42 UTC
warzonetemp wrote:
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?


You did not really search a lot if you did not see my "Loans and not micro loans" thread usually floating in the MD and Sales forums first pages.

EvE Online portal | EvE markets tutorials
Whang'Lo
Cosmically Irrelevant
#9 - 2013-07-28 02:39:07 UTC
Under a Billion.

Your living on the streets, begging for change.

[u]A Paranoid is just someone with all the facts - William Burroughs[/u]
flakeys
Doomheim
#10 - 2013-07-28 07:09:08 UTC
Vaerah Vahrokha wrote:
warzonetemp wrote:
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?


You did not really search a lot if you did not see my "Loans and not micro loans" thread usually floating in the MD and Sales forums first pages.



He refered to ''some collateral'' so i assume he is meaning not full collateral.Wich would leave you out VV , or so i understood his question.

We are all born ignorant, but one must work hard to remain stupid.
Vaerah Vahrokha
Vahrokh Consulting
#11 - 2013-07-28 11:19:59 UTC
flakeys wrote:
Vaerah Vahrokha wrote:
warzonetemp wrote:
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?


You did not really search a lot if you did not see my "Loans and not micro loans" thread usually floating in the MD and Sales forums first pages.



He refered to ''some collateral'' so i assume he is meaning not full collateral.Wich would leave you out VV , or so i understood his question.


Well, my simplified English led me to believe "some collateral in the form..." = with collateral composed by not better specified ships and datacores.

EvE Online portal | EvE markets tutorials
flakeys
Doomheim
#12 - 2013-07-28 11:45:42 UTC
Vaerah Vahrokha wrote:
flakeys wrote:
Vaerah Vahrokha wrote:
warzonetemp wrote:
I took a look at the "loans", or supposed loans out. All of them are over a billion in aggregate size.

So, why is there no micro-lenders around here? For things 10-500 million isk in size with some collateral in the form of ships or even data cores?

Looks like everyone either grinds it out with Level 4's or station trading to make up the difference for that new shiny CNR or a POS array, I would imagine micro-lenders would have a field day with this untouched market.

Anyone know why the market seems so geared on large billion isk loans versus micro-lending?


You did not really search a lot if you did not see my "Loans and not micro loans" thread usually floating in the MD and Sales forums first pages.



He refered to ''some collateral'' so i assume he is meaning not full collateral.Wich would leave you out VV , or so i understood his question.


Well, my simplified English led me to believe "some collateral in the form..." = with collateral composed by not better specified ships and datacores.



We should get someone in here who is native english speaking .... maybe he can help us ''foreigners '' Blink

We are all born ignorant, but one must work hard to remain stupid.