Loans

[vasroe]

How might I go about taking out a loan?

[Arviður]

I am willing to lend money. How much would you need?

[Erik Mortis]

I can also loan money. I got a metric fuck ton of it.

[vasroe]

My casino company is going to need a lot of money for payouts. I would also like some personal spending money.

30,000.00 Erb @ 1 year is what I need. Who can offer me the lowest interest rate? I would prefer it be 15% and below.

[Malliki Tosha]

Um... No one here has 30 000 Erb. Maybe 10-20% of that.

[Andreas the Wise]

Vasroe, if you look at the bank stats, you can get an idea of how much money the average person has. That should give you an idea of how much they might gamble; and hence how much capital your casino needs.

[Erik Mortis]

I have half that... well.. more then half.. but even I won't lend that much out. I thought we were talking a few thousand.. maybe €5k.

[vasroe]

Consider this, Erik. A loan of 4,500 at 10% interest, payable a year (365 days) later. That would get me up to past the average for personal accounts, plus a little breathing room.

I am surprised to see company accounts having on average less money than personal accounts. I wonder if this has to do with the feudal societies in Shireroth and other SC nations. In Antica's economy, companies on average had more money that personal accounts.

[Erik Mortis]

Personal accounts got created before Company accounts. I created the company account ability only a month or two ago...

[vasroe]

That explains it then. I take it you are not interested in the loan offer I mentioned, Erik?

Arvithur, I saw your high bidding for Lumina's Light, so I know you've got big money. Would you consider loaning me 2500.00 in exchange for a 250.00 down payment and no interest? (Antica's banking system used down payments instead of interest.) I would repay the entire amount in 365 days.

[Malliki Tosha]

Consider this, Erik. A loan of 4,500 at 10% interest, payable a year (365 days) later. That would get me up to past the average for personal accounts, plus a little breathing room.

I am surprised to see company accounts having on average less money than personal accounts. I wonder if this has to do with the feudal societies in Shireroth and other SC nations. In Antica's economy, companies on average had more money that personal accounts.

It's also due to us using our personal accounts for our corporate money.

[Erik Mortis]

hmmmm... so I'de make €450 in a year...and if you can't pay me?

[Arviður]

I can lend you 2500 erb.

Conditions:

5% interest monthly until everything is paid off.

After a year, everything must have been repaid. If not, uhm, we need a law for this.

[vasroe]

Yes, Erik. 450 would be your profit. And in the highly unlikely event that I could not make the repayment, we would probably have to negotiate some sort of payment plan. Failing that, I guess I would be at the mercy of Shirerithian law.

Arvithur, thank you for your offer; however, I must decline. If your proposed monthly interest rate is added up over time (to say nothing of any possible interest compounding), the actual annual interest rate would be 60%, which is, I am afraid, too high.

[Arviður]

Vasroe,

I understand, but please consider that one year in micronations' terms is an aeon compared to the Earth's. Nations rise and fall over one year, and nothing is cast in stone. We don'tknow if the economy will still be running in one year's term, or if Shireroth itself will exist, let alone your membership here. Because of these risks, interest would be high.

[vasroe]

Ok. So the interest is risk-based. I can almost understand your reasoning, except that from my "insider" vantage point I do not see much risk in my enterprise; after all, Antica Casino, Co. has already been up and running successfully in Antica for over a month. Perhaps you would be interested in something with more limited liability. If so, my suggestion to you would be to look at the other thread in which I am selling shares in Commonwealth Casino. You could get dividends paying out 5% if you buy one of the remaining shares, or 10% if you buy both of them.

[Andreas the Wise]

Honestly, shares are probably better for financing this than loans. Even if there's no forseeable reason for VasCo collapsing currently, it is true that most micronational economies change system completely within twelve months. Obviously we hope the SCUE doesn't collapse, but there's definitely a lot less risk on your side. Therefore shares, which give people something they own without needing to get money back, is probably better.

[Erik Mortis]

I'm more afraid of this venture failing then of the economy collapsing. and it's a truth that Shireroth WILL be here in a year..