I recently bought a set of BPOs for capital parts. Due to a delay in the actual production of capital ships, I’m looking to use the set of BPOs as collateral to keep my liquid ISK up so I can keep making my income from market.
Period of the loan will be between 2 and 3 months. The loan provider(s) will receive monthly payouts on their invested principal OR reinvestment, at their discretion.
The collateral will be given to ENorn - awaiting asset valuation
What BPOs? What ME/TE are they?
I’ll be happy to fill if Norn will hold and confirm the value of the collateral.
I’ve seen the collateral and confirm it’s sufficient to cover the 18b principal of this loan.
I’m not currently holding it. I’ll confirm once I’ve accepted the contract later today.
ISK is ready to be sent over once you’ve got the collat. Cheers.
For the sake of transparency, I will post a monthly update here on the payment or reinvestment on interest. Collateral has been sent to ENorn.
Confirming I have the collateral. Feel free to send the ISK to Scrooge GoldenRod.
ISK sent to Scrooge GoldenRod.
900m interest paid out.
Why is a 3rd party needed in a fully collaterised loan?
To hold the collateral
You don’t trust the lender to hold I see, the lender is not trustworthy. Why not borrow from the holder, are they space poor?
The situation is basically:
The Lender has money.
The Borrower needs money and has collateral worth as much or more as the money needed.
If the Borrower gives the Lender the collateral, it may be worth more than the money given, meaning the Borrower is at risk of losing their collateral to an unscrupulous Lender.
If the the Borrower does not give collateral, the Lender is at risk of losing money if the Borrower just walks away with the money.
You also run the risk of either party not following through with returning collateral/money at the end (though Eve contracts could resolve this).
So, both parties agree on a third party to hold the collateral until such a time that the Borrower pays back the loan plus interest to the Lender.
Sometimes trusted third parties will give loans, but if they have no interest in doing so, you still need to resolve the problems above.
To prevent lender default, also known as “ooh, I can get 23 billion for this collateral by selling it”
I see this lender is not trustworthy, I understand.
BTW I can provide full coleteral loans without middlemen, pm me. I am trustworthy.
900m interest paid out for 5% interest on initial loan. Full repayment has been made on the initial 18b loan.
Final length of loan was 2 months, with total 1.8b interest paid and principal returned.
Can confirm I’ve recieved the interest payment(s) and the principal.
Many thanks
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