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X ATM092
Clan Shadow Wolf
Fatal Ascension
255
   |
Posted - 2014.01.27 16:02:00 -
[1] - Quote
So, if I can follow this correctly, you're paying 8.25% monthly (2%/w compounded) for the right to loan out 75% of the investment. That amounts to 11% monthly interest payments on the isk you're loaning out just to break even on the interest payments on deposits. Now obviously you'll be wanting to take a cut for your time and trouble so let's say you need 15% monthly interest on the isk you loan to break even after labour.
So, how can you get 15%/m interest on loans, well, the basic rate for MD collateralised loans is 2%/m so you're looking at uncollateralised loans only. After all, if they have collateral they're not going to want to use your service at 15% when they can use someone else at 2%. Uncollateralised loans come with a fairly high default rate because you have literally no way of compelling them to return the , let's assume 50%. This means that your breakeven interest rate on loans now has to be about 30% to cover the interest payments on deposits, assuming a higher interest rate doesn't change the default rate.
Could you please expand upon your business plan? |
X ATM092
Clan Shadow Wolf
Fatal Ascension
255
|
Posted - 2014.01.27 17:48:00 -
[2] - Quote
Sorry, I'm still confused. If you're only making loans to one specific operation which is run by people you know IRL then in what sense is this a bank? You're suggesting we make uncollateralised loans to you so you can in turn make uncollateralised loans to them, wouldn't it be simpler if they just presented their business model here and asked for loans to expand their operations? That way we can see what we're buying into without having to trust a 3rd party (you) with all the isk uncollateralised. This is a bond offering. |
X ATM092
Clan Shadow Wolf
Fatal Ascension
255
|
Posted - 2014.01.27 18:30:00 -
[3] - Quote
I think it's far more likely you'll get investors if you can show people what they're buying into rather than having them give money to a "bank" that multiplies it using a mechanism that is kept out of sight. |
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