Market Discussions

Why would you use ISK as collateral to borrow ISK? You already have more ISK than you wish to borrow (that's how collateral works) so no need to borrow ISK. Collateral is for instance, you have a full set of researched BPO that's worth 10B and you want to use that 10B for trade without having to perminently sell the BPO. So you "pawn" the BPO to the lender for slightly under their value in ISK and then essentially buy back the BPO when you have the ISK once again, usually using profits from the loan.

Regardless of reputation, you're just making it apparent that all you want to do is grind rep and eventually go for a big uncollaterized loan, and vanish into thin air. You wouldn't be the first, and surely you're not the last.

Collateral >> reputation.
Also, you just sunk yours. The way to gain reputation here is to borrow money for, or be part of, reputable projects and conversations.

You're not seeing this the way everyone else is.
Why do you need a loan if you have isk? And if you have isk, why do you need to buy collateral items?
Loans are usually meant to acquire capital to do something that yields more capital. Thus the loan gets repaid, and profit is made.

If you already have the isk, you don't need a loan. And thus get suspected of dishonesty.

This can't be out of "curiosity". I mean you can't be that stupid right? "I need a loan for 100m, and Ill give you 100m to hold while I hold your 100m"

ppl dont buy collateral for the sake of having collateral, ppl have collateral as a result of something.

Why not sell collateral then and after just get it back you may ask ? Because some things arent that easy to come by, AT ships, rare collector items, you cant just sell a golden magnate for 1.5t ands then buy it for 1.5. But you can easily use it as collateral for 1t .

or Silvershore coat, it's hard to sell it for a exact price and buy it back 6 month's after for the same price, but it's a easy collateral for 15 20b.

On the other hand if you have 50 plex you might aswell sell those instead of using them as collateral.

I guess I should have worded the question a LOT differently lol Trying to figure out how you get started getting the loans in the first place. Some of my T2 invention/production plans require a lot of isk per "batch". So lets say you wanted to do 2 batches but don't have the isk or collateral to get it done or ask for a loan. No one is going to loan to you, so why not build up some sort of reputation now kind of thing.

I don't know guys, I was bored as ****, and like to spark conversation. I guess this is what I get for asking a question about loans in "Market Discussions". Ruthless *insert explicit word here* emerge.

Right, that makes perfect sense. I understand it for sure.

I know this...I really do. I give up lol it just seems you have to be on at the right time and with the right people to ever really get a loan. Reputation won't matter for **** either way.

Oh man, a good business idea, good for you! Seriously, glad you had that going for you. I applaud your efforts. I also greatly appreciate your condescending comments. Thank you.

I can kinda understand where this come from. James is not space poor by any means so he's not in need of pocket change ISK, and he probably has bigger business plans in mind which would require big ISK. And when you haven't done loans before it is natural to feel a bit unsure - would I get loans of XX billion ISK as my frist loan on MD? etc.

Rep is important, but for starting out I think pretty much everyone can say that collateral is the most important thing. You can be a total new comer to MD making your 1st post but if you have over 100% collateral held by someone like Chribba you probably get your loans quite quickly. However, at the same time, even if you have pretty substantial collateral if you are trying to borrow XXX billions of ISK then it may be hard even with collaterals - so rep is not totally useless either.

Getting loans while you have enough ISK can also be a good thing. When I did my 120b bond I actually had more ISK than that in liquid, but I wanted to do a bond so that I can have ISK committed & controlled in disciplined way that would be used for different projects. And that kinda worked, because with my own ISK I did gamble (both as in real gambling and in more speculative investment) but with bond ISK I received I tried t be more analytical and make consistent returns over long term, so that did give me new experiences on that front too.

However, James, using ISK for collateral is not that great idea heh, I think you know that. But yeah, there are reasons to borrow ISK even when you have enough ISK presently. (I do this IRL as well, sometimes I don't need to take a loan but if the interest is so low & offer is great than I would do it while I can, if I can find other ways to use the $$$ I borrow and have secure plans to pay it back).