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How to offer loan - Idea cycling my head
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Jori McKie
Hedion University
Amarr Empire
#1 - 2017-04-13 15:55:13 UTC  |  Edited by: Jori McKie
I was thinking about this for some time and with the coming changes to PLEX it might be a good idea.
Principle idea is nothing new:
- I'm lending ISK only against collateral and only accept PLEX as collateral.

Now the questions:
- Do i really need a 3rd party to hold collateral or would it be acceptable if i held the collateral with a lower risk margin. Like only 6% of the collateral instead of the usual 10%.
- I'm not sure about the chances to get customer because most loans i know of weren't using PLEX as collateral and before i invest more time in this project i would like to hear what you guys think.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." - Abrazzar
William Ormono
Reason Will Prevail
#2 - 2017-04-13 16:35:56 UTC
Out of curiosity, how has using PLEX as collateral worked for you as a banker? Do you have many clients who have signed up for this kind of deal?

I would have thought that there would not be much interest in this sort of arrangement due to the nature of it. If the client has stockpiles of PLEX to use as collateral, couldn't they just sell the PLEX and fund themselves? And if they don't have PLEX, surely they wouldn't spend ISK to buy PLEX to give to you to get ISK, would they? Seems pointless, unless you overvalue the collateral, in which case I imagine a lot of people would default on your loans.

I've seen some of your posts and you seem to know what you're talking about, so I imagine I'm missing something. Fill me in if you have time to cater to my ignorance Blink
Jori McKie
Hedion University
Amarr Empire
#3 - 2017-04-13 17:39:16 UTC  |  Edited by: Jori McKie
Until now i only funded friends, i wasn't in the public loan business ever. And i know only of one public loan where PLEX was used as collateral that's why I'm asking here.

Your assumption is that someone who bought PLEX via ISK would exchange them back in times of need. That might happen but i'm fairly sure it is rare because PLEX is the Gold standard in EVE and exchange ISK to PLEX is the best inflation insurance you can get. So once you have bought PLEX via ISK it won't be a good idea to exchange it back as it has a unique feature game time.
This sort of pilots would be my potential clientel, pilots who need cash and have the right collateral.

You are right about someone who bought PLEX with RL money. That won't be my clientel.

So i need an estimation of how many pilots are there which fits my description and need a loan. It would help my decision making in investing more time in this project or not. I'm thinking along the line of a premium loan business, very low rate, short duration and fair/easy valueing of the collateral.

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." - Abrazzar
William Ormono
Reason Will Prevail
#4 - 2017-04-13 19:58:21 UTC
I know that this would not be of interest to someone such as myself, but I doubt I am the demographic you are looking for feedback from. I'm still pretty new to New Eden and only have a few Billion to my name. Sounds like the guys you're looking to deal with will be much more established than myself.

I'll stay tuned though. It's a new idea, and I like new ideas in this game Big smile