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Bond, preliminary research (thanks!)
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Spiderman Blitz
Pator Tech School
Minmatar Republic
#1 - 2012-02-10 09:18:06 UTC
If I were to sign up for a loan in this game I'd want it to be really large by the standards of players who don't have tons of cash: say 5b to 10b minimum. I don't think that taking a loan for less than this amount would provide good enough returns to justify the time (could be very wrong about this).

If this were for doing some passive/semi-passive income generation, like running research or managing a few POS: enough work that the 5-10b would be required, would that sort of thing be something that could attract investment or not, since I figure people would invest their own isk in those passive investments first, rather than investing in someone else to do the same thing. Would I be able to get a low enough interest rate to make those activities profitable?

The advice of starting small that's posted in a sticky somewhere doesn't really put a high enough value on your time, imo., which is why I am thinking of starting at least at this size.

How do you provide assurance if you don't have capital for collateral? I assume this size means that an audit would be affordable.
Magnu Stormhawk
#2 - 2012-02-10 09:44:59 UTC
Spiderman Blitz wrote:


If this were for doing some passive/semi-passive income generation, like running research or managing a few POS: enough work that the 5-10b would be required, would that sort of thing be something that could attract investment or not, since I figure people would invest their own isk in those passive investments first, rather than investing in someone else to do the same thing. Would I be able to get a low enough interest rate to make those activities profitable?


People with a lot of ISK who are looking to invest often either dont have the time or inclination to even handle semi passive income generation, or are already doing it and still have isk to invest. If you have a solid offer, I doubt you will have any concerns on that part.

As to low interest rates, you either have collateral or you dont. If you have, then rates arent an issue. You can get a low enough rate to support many passive income ventures. If you havent, then you have to price the offer accordingly, and it is expensive because you have to pay high enough to tempt investors into making a risky investment. Therefore, uncollateralised first time bond which isnt going to make a big ROI for the borrower, is going to be very tough to achieve at a rate that still nets you profit.

The high rate uncollateralised bonds work usually when they are trading bonds, because the ROI for the borrow is large with active trading, meaning they can afford a high cost of capital.

Spiderman Blitz wrote:

How do you provide assurance if you don't have capital for collateral? I assume this size means that an audit would be affordable.


You cant. You can only put forward a case and a business plan and hope that it is sufficent for people to be willing to take a punt on you. An audit can assist you in this process, but it is by no means a certificate that guarantees you investment. It can demonstrate competence but not intention.
David Forge
GameOn Inc.
#3 - 2012-02-10 16:34:26 UTC  |  Edited by: David Forge
The difficulty with starting big is that few are likely to give you the benefit of the doubt that you can be relied upon.
Tidurious
Blatant Alt Corp
#4 - 2012-02-10 18:12:09 UTC
Good luck trying to get much - and I mean that in the nicest possible way. See the following offering and subsequent of (mostly) trolls:

https://forums.eveonline.com/default.aspx?g=posts&t=68046&find=unread
Spiderman Blitz
Pator Tech School
Minmatar Republic
#5 - 2012-02-11 15:12:05 UTC  |  Edited by: Spiderman Blitz
Thanks for that reply. I'm at least slightly aware of the difficulties, may have found a solution, don't want to talk about it just yet.

Another question, for a collateralized loan, who holds the stuff (BPO, etc.) and what's their cut of the action, or do you just get a publicly recognized investor and they do it for free?