ore as collateral for new players, surely they will just sell the ore?

Google "EVE BANK" for why people will never trust you. But good luck!

Also please stop commenting on the ore as collateral;) You do not know the rates of collateral we would be using. If you did you would be standing in line in stead of saying things that have no foundation of truth in them.

Who exactly are you talking to?

well how much is the collateral? usually collateral is something worth more than the loan to guarantee repayment

I get that you are really enjoying theorycrafting all this. Far be it from us to spoil your fun there. But if you bring it here and ask for input you are going to get some serious and critical responses and enquiries, and trying to bat them off with 'you don't know enough about it to comment' isn't going to cut it.

The point about ore as collateral is valid. Regardless of your 'collateral rates'. Either you are lending less than the value of the collateral, in which case it makes no sense to borrow when you can just sell it. Or, you are lending more than the value of the collateral, which is just asking to be scammed, and given there is interest to pay back anyway, the actual benefit of borrowing is going to be very minor. Collateral works with assets that are not as liquid or that are liquid but you expect to increase in value in excess of the interest you are paying on borrowing against it.

There is not enough demand for this. That is your problem. It is not that difficult to make ISK.

The reason why there is a demand for investment (and you can see things get filled here pretty quickly when they are legit) is because there is a lot of ISK sloshing around in the pockets of the wealthy, and they don't have the capacity or inclination to work it themselves to generate a return greater than what they can earn via lending. Supply outstrips demand in this market. You are not creating an availability of funds where it doesn't already exist.

But, how many requests for 50m/100m/200m do you see here? They pop up occasionally but its usually just some guy who got his mission running ship blown up and promises he wont get the next one blown up if you lend him the money to buy it. People don't need it, and it's just an added complication with minimal benefit, unless you want to do it for RP purposes. Your proposal seems to center around lending money to miners.

Also, please stop telling us how trustworthy you are. It doesn't mean anything to anybody and it isn't going to help you. Do you think any of the successful trusted individuals in EVE ever announced pledges that they would return all money they were trusted with and told everyone how trustworthy they are? I don't think they did. Some people do. They are generally the scammers. My gut feeling is that you are genuine and honest and do actually mean what you say, but my point still stands - it is the business plan that matters if you want to build a successful business, not convincing people that you are honest.

Good luck

when you say regional best offer, I presume you mean the highest regional buy order.

And is your percentage going to mean your price/loan is somewhere between buy and sell orders?

and the obligation to pay interest (on the whole lot?).

Also, why do you need to travel to every player? Contracts will do the job fine and let you assess the value of the assets. You can just tell them to take the regional buy price, add a percentage, and put it up for you. You can assess that remotely. If you can in any way make this work (and I am doubtful) I would set up something simple like a variation of evepraisal for people to use.

2. I could contact you, wait for however long it took you to fly out to my system, and the have a chat about my Ore, and my price, and my loan. You would offer me 15 + X%. Lets say its 10% so 16.5. We set up a contract at that and I get 412.5m ISK. Ok, cool, so I've got 37.5m more in my wallet. Except I've got to pay it back. And I've got to pay interest. Maybe pay interest on the whole 412.5m? Who knows. I'm so confused by this point I figure I'll probably just default anyway so it wont matter. But I choose not to default. I do some more mining, maybe in a shinier ship, and I make enough to repay the bit I have to repay. I send you the 37.5m and the interest. You keep the ore, and probably flip it on sell orders meaning you get your 412.5m back plus my 37.5m and interest. Meanwhile I actually got less than 375m for my ore in the end, just to get the benefit of an extra 37.5m for a little while, which is probably what I could have made instead of spending time going through this process. Ah wait you say, its not quite like that, because you could repay the whole 412.5m plus interest and then get your ore back and go and sell it yourself. Except, that would require selling everything I own in order to do so.

snip

Hello, am I correct in assuming you are the OP's partner in the bank enterprise?

Hi everyone,

My character is Werner Ross, I am quite new to EVE but I have been good at the business games during the past few years (mostly because of RL interest in the subjects.)

I have posted 1 topic before regarding loans. But I want to post this topic to make it clear to everyone that I am still in the concept phase of the plan. I am brainstorming with a newfound friend that has a few years more experience in EVE then myself.

For now it is all fun and games with me and my friend thinking over the options we have, but I just wanted to let everyone that keeps these kinds of things on their monitor: The bank will be mostly focused on helping the new pilots getting kickstarted in their careers. At the moment we are thinking about ore as collateral (since new pilots mostly don't have anything else to put up as collateral.) The idea would be creating a relationship between the bank and the client over time and several loans (we start out with small loans and the client can earn bigger loans by paying them back, like real life really.)

Savings accounts will be a part of the future, but first if we make it beyond the concept phase we will be focusing on getting clients for loans first because savings accounts require alot of trust. Trust is hard to come by in EVE (I have noticed and even found out myself with a billion scammed from me), which is why we start out with loans and we will work our way towards the savings accounts section as we go along with our clients and they gain our trust and vice versa. This all is considering us getting past the conceptional phase of the idea.

One important thing can be pledged right here and now: If we make it beyond the conceptional phase and we start the actual bank and people entrust savings accounts with us they will in any and every case get their money back. Also the money will be accessable only through me. Since this raises scam flags in everyone's mind(or so I would imagine), we are at the moment looking for a viable monitoring system that can keep ''me'' in check so we do not repeat the disaster of the last major bank.

Among the steps we are taking to not becoming the major frauding bank are:

1. Small loans at first (lower risk for both sides)
2. We are thinking of a outside monitoring system (like a commity or something where we would need volunteers for to start one that would get access to video's I will make every week of all transactions done by the Alt account that will manage the bank's money.)
3. Only 1 person will be able to access the money (me), this way(for the sceptics/paranoids among us) if there is even a trace of fraud there is no need for investigation because there is only 1 possibility. So no blaming other people or factors in case of fraud because only 1 person would have been able to access the funds.
4. Still thinking of it
5. still thinking of it (but the magic number is 5)


Updates will appear here, and please let your thoughts loose on this topic. Im still adament in seeing this through. But it will take some time to get it up and running and have a viable plan ready (im treating this as I would my own business plan for my own store which I am also planning to start somewhere in the next 10 years), so rest assured knowing that I am not doing this as a quick moneymaker (the opposite is true since the margins we are at right now in the concept are low considering the amounts we make available to the clients).

Have a good day on EVE and all fly safe!

Kind regards,

Werner,

P.s. for the people that actually are interested in helping me complete the concept you are free to contact me for details. But since the details keep changing in this stage I will not post about them alot anymore.

Now we do understand that some players might vanish and keep the ISKs but there will be incentives for the players to honor their debts as well as security measures to minimize the risks we take.