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Julian Huxley
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Posted - 2011.09.06 01:41:00 -
[1]
I've got 1.5 billion isk to lend at a moment's notice. Naturally, collateral is required. Any commonly traded items can be used, so long as they're in the vicinity of jita. The items are valued at 90-95% the market price depending on volatility. I'm offering 1 week loans at 5% and 2 week loans at 7.5%.
To negotiate a loan, contact me either here or through eve mail.
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Chevalleis
The Legendary Conquest
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Posted - 2011.09.06 03:54:00 -
[2]
Is there an option to do longer loan (e.g. 1 bllion for 1 month)? Would the interest then be 12.5%? Do you accept BPOs?
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Julian Huxley
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Posted - 2011.09.06 14:33:00 -
[3]
Unfortunately, the contract expiration periods can only be 1 day, 3 day, 1 week, or 2 weeks. So, that being said I could give you a 2 week loan for 6.25% assuming you'd want to renew for another 2 weeks at the end (to keep the 12.5% rate).
BPO's are perfectly acceptable for collateral. What BPO's do you have? |
Claire Voyant
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Posted - 2011.09.06 14:48:00 -
[4]
How exactly are you using contracts for these loans? |
Julian Huxley
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Posted - 2011.09.06 15:59:00 -
[5]
I could just wait the 2 weeks, but I assume most people wouldn't want that. By doing so, they have to trust I have the item for the two weeks that it's not in the contract system. Keeping it all within the contract system limits the risks of my customers, they can see their item being held in escrow rather than just trust I have kept it.
The way this works is: you contract the item(s) to me for the loan amount, then I immediately contract it back for the agreed time period for the loan amount + interest. My money is protected by the collateral, your collateral is protected by being held in escrow.
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Claire Voyant
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Posted - 2011.09.06 16:36:00 -
[6]
 Originally by: Julian Huxley
I could just wait the 2 weeks, but I assume most people wouldn't want that. By doing so, they have to trust I have the item for the two weeks that it's not in the contract system. Keeping it all within the contract system limits the risks of my customers, they can see their item being held in escrow rather than just trust I have kept it.
The way this works is: you contract the item(s) to me for the loan amount, then I immediately contract it back for the agreed time period for the loan amount + interest. My money is protected by the collateral, your collateral is protected by being held in escrow.
That is a perfectly acceptable way to do this. I retract any mention of a possible contract scam. Of course you could always fail to post your contract or close it before it is accepted, but any reasonably intelligent person should see the risk of that. Of course posting the return contract also provides no real protection, except that you won't be missioning with their faction-fit ship or putting their collateral up for sale in Jita, but I guess I can see the value of that.
Unfortunately, you probably won't get many takers for the one month version if they are required to have the isk after two weeks to roll over the contract because why would they need a one month loan if they expect to have the isk back in two weeks? You could just put up a two week contract and then replace it when it expires. The first contract might have a lower interest rate to encourage an early loan payoff option (higher than the usual 2-week rate but lower than the monthly rate.)
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Julian Huxley
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Posted - 2011.09.06 21:54:00 -
[7]
How about this, for longer loans I will just issue a 2 week contract and cancel it at some time on the 13th day, and then just renew the contract. This could be repeated as many times as required. A month loan could be made from two 2-week contracts and a 3-day contract.
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EvilCheez
That's Retarded
FIGHT CLUB INC
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Posted - 2011.09.07 04:35:00 -
[8]
You are over complicating things - no one is going to be put off buy entrusting their collateral to you when at the outset you are giving them 90% of its value. If you were stealing you could only get 150m off your scam - not that much.
If it were me I would have a set percentage per month rather than 4 different rates and have them pay the interest in isk each month and then give you a heads up through evemail when they want to pay it off.
also you may want to move to the new forums
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Atima
Minmatar
House of Marbles
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Posted - 2011.09.07 09:11:00 -
[9]
There is no need to worry about the client's collateral in such a way. Only an idiot would scam the collateral in this situation. Here's why :
Assuming the loan is completed as per terms on a 1 month payout :
12.5% profit
Assuming the collateral is scammed at the lower level of 90% collateral valuation :
11.11% profit.
The only situation it becomes profitable to scam the collateral is when the loan is on 1 or 2 week terms and you use the lower level of collateral valuation. Which is pointless because the shorter the loan, the lower level of collateral should be required for the same item.
When you factor in the 'cost' of loss of reputation if you did scam the collateral then it becomes almost a negligable risk to the client.
As such I don't believe there should be any reason for the contract to be in place imediately.
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Julian Huxley
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Posted - 2011.09.07 14:23:00 -
[10]
That makes a fair bit of sense, I'd be fine with doing it either way I guess. Whatever the customer is most comfortable with. I'm fine with forking over the extra 10000ISK to have the contracts up in the mean time just to prove where the collateral is for the uneasy borrower, but for the reasons you've said it isn't really necessary.
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