Thoughts on loans to players

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Thoughts on loans to players

Post by Lirisa on Sat Mar 26, 2016 7:15 pm

I'm considering opening up small loans, mainly geared towards towards new players.


1 million
5 million
10 million
15 million

I'm thinking about a flat 10 percent interest for if it is on time, and 20 % simple interest rate for every five days repayment in full it is late (includes the initial 10% I ask),

What are your thoughts?
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Re: Thoughts on loans to players

Post by Robert IV on Sun Mar 27, 2016 11:40 am

Don't we already have this?
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Re: Thoughts on loans to players

Post by Prezyan on Sun Mar 27, 2016 12:09 pm

These rates are far higher than the established banks of Orbis. The 10% flat interest for on-time payments is fine, but 20% interest per 5 days late is far too much, almost or more than double the established rates of the more popular banks.
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Re: Thoughts on loans to players

Post by Andrezj Kolarov on Sun Mar 27, 2016 12:14 pm

I don't think it's a particularly good idea, GPA is neutral and running a loan business could get you involved in some entangling situations. What if a nation takes the money and refuses to pay it back, will you hire "enforcers" to attack him? Well that breaks our neutrality.

If new nations want loans then they should join the GPA and get interest-free ones.
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Re: Thoughts on loans to players

Post by Prezyan on Sun Mar 27, 2016 12:24 pm

Andrezj Kolarov wrote:-snip-
And I don't believe you know how Orbis banks work. I don't mean any offense, but banks that specialize in loans, aka all of them, don't hire people to go attack others. You know what happens to those people? They get blacklisted. For example, if you didn't repay the money back to SO (Stratton Oakmont, a bank based out of BK) Psweet (the owner) would blacklist you, and he'd then go tell other banks such as the one operated by Josh Freer (Based out of BoC) that the nation in question has stolen from him. Josh, not wanting to have himself stolen from, will then blacklist that person as well. So eventually, this person is blacklisted from every major loaning operation in Orbis.

Only in the most extreme situations, would a bank ever have to hire mercenaries for extraction, and for almost all banks, this has never happened for their entire existence.
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Re: Thoughts on loans to players

Post by Andrezj Kolarov on Sun Mar 27, 2016 12:28 pm

Still though, it seems to me duplicitous and exploitative to make money from interest on loans to new players and at the same time be in an alliance which offers interest-free loans. Why not invite them into the GPA instead of trying to exploit them.
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Re: Thoughts on loans to players

Post by Lirisa on Sun Mar 27, 2016 12:52 pm

Andrezj Kolarov wrote:I don't think it's a particularly good idea, GPA is neutral and running a loan business could get you involved in some entangling situations. What if a nation takes the money and refuses to pay it back, will you hire "enforcers" to attack him? Well that breaks our neutrality.

If new nations want loans then they should join the GPA and get interest-free ones.

Prezyan pretty much answered how I would answer to people who have defulted on loans. No mercs or anything like that just a blacklist..

At 15,000,000 a ten percent that's 150,000 I'm not honestly making that much off. The twenty precent late-fee was not meant as a revenue stream it's meant to encourage people to pay their loans back quickly. I meant to say it would be every fifth day with the exclusion of weekends for my time,and the orignal 2 week loan agreement. The high intrest late is not meant as a revenue stream, but a way to encourage quick repayment though I'm not even decided if I really want to do it, no less the actual figures.So much work.>.>

Also, not everyone wants to join the GPA, if someone was in the gpa, I would say hey our alliance has intrest free loans, go there first. Though the influx of cash values helps new players far more than interest rates help, I mean honestly if I do mat, I think even with one late fee I still make more than that per tun.
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Re: Thoughts on loans to players

Post by Andrezj Kolarov on Sun Mar 27, 2016 1:50 pm

Fair enough.
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Re: Thoughts on loans to players

Post by ezioauditore16 on Mon Mar 28, 2016 6:21 am

I wouldnt trust anyone outside the alliance with player loans....
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Re: Thoughts on loans to players

Post by ezioauditore16 on Mon Mar 28, 2016 10:58 am

"At 15,000,000 a ten percent that's 150,000...."

10% of 15,000,000 is 1.5 million
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Re: Thoughts on loans to players

Post by Aokiji Kuzan on Mon Mar 28, 2016 12:21 pm

While I do think the interest is peak high, It's a good idea to help others.
I think Lirisa is fine with no interest? She's done it. Laughing
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Re: Thoughts on loans to players

Post by Lirisa on Tue Mar 29, 2016 8:08 pm

ezioauditore16 wrote:"At 15,000,000 a ten percent that's 150,000...."

10% of 15,000,000 is 1.5 million

Of course, it is.I was testing you. ^^ Okay, //_ // I still think my point remains vaild, even if I fail at math.Not much I can do with that, and the large influx helps them more. I should remember why I prefer to do math with calculator. >.>

So I was thinking more on this, and I was thinking a much smaller 2.5 for 30 days on-time excluding weekends using US Central time,to match the game servers, two days of grace after the intital 5% penalty will be applied with the on-time commission then after that every fifth day after grace period is another 5% penalty.

I am also thinking about just having a no interest for on time and applying 5% penalty for lateness as explained above.
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Re: Thoughts on loans to players

Post by Aokiji Kuzan on Wed Mar 30, 2016 1:21 am

With 10% interest I believe larger nations are the most in favor 'coz it's easier for them to generate income since they have much infra compared to new or smaller nations.
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