Marketplace Upgrade

[Zab]

Since the Marketplace is used A LOT for Loans. .I am thinking about adding a Loan Shark upgrade to it.

The idea I have is that you set your terms:

Zab - Loan Amount 500 Points Repayment Amount 550 Points Days to Repay 4
People Who Have Applied for the Loan: Name Here, Rating etc


Then you can grant the loan based on ratings system.


The marketplace is NOT designed for loans, because what happens is, users get the loans, spend the points then never come back. The person who gave the loan disputes it, then the only one out of points is the site..

So, loans will have to be do at your own risk.


ESSENTIALLY I am insuring your loans :|

[Poof]

That is a great idea. All loans should be at our own risk anyway, the site should not be responsible in any way, imo.
It will help to see who pays back and such. I know I have contemplated loaning and went to the market place to see who had set up repayments for certain members, but it doesn't really tell you how many they have paid back or how many outstanding if the person who lent didn't set up a repayment thing yet.

[Daytradin]

I do not aggree with this system on the basis that if you are obsolving yourself from the risk than you should have no say in the rate and be left to be negotiated between the borrower and lender.

[pokerpiglet]

maybe hes saying u get rated for suscceful completion of the deals
that way if u have a good rating people know who to trade with
seen this on other forums as far as trading its the members who rate each other

[Zab]

Yes I 100% agree.. I dont care what the rate is, I was just using that as an example

Yes by RATES i meant feedback rating 100%, 50% etc.. So you can avoid bad users

[Daytradin]

maybe hes saying u get rated for suscceful completion of the deals
that way if u have a good rating people know who to trade with
seen this on other forums as far as trading its the members who rate each other

this was the point "Zab - Loan Amount 500 Points Repayment Amount 550 Points Days to Repay 4"

10% of principal

[Drywallman3]

hmmmmmm I should have put a patten on my idea

[Daytradin]

Well after giving a little thought you could make a page similar to the staking page but for loan requests instead. The borrower can put out a loan request with terms including principal desired, total repayment with interest broken out and adjustable for counteroffer, and stated repayment date. (if not paid their account goes debit) Credit history including qty of loans perviously taken and feedback included. Then like in staking, the lender can peruse the loans or consumate a pre-negotiated deal. There can even be a maximum transaction value (600? 1000?) and a limit such as a new loan cannot be requested before the 1st loan has been repaid.

Furthermore, there could be a negotiation function. 3 buttons displayed. Accept/Counteroffer/Decline (while decline is only active in counteroffer mode). Hence a lender can peruse and accept outright, counteroffer at which time the borrower can accept or decline...killing the loan request.

Another intersting thought is to have every loan pay into a pool that insures bad loans. That fee could be split beween the 2 parties so that a larger fee can be charged. Maybe something such as 6%-8% of principal. Hence a 500 pt loan generates 30-40pts of insurance premium (15-20 from buyer and seller) . 10-15 loans made absorbs a bad one. A system that allows for recovery provides some comfort to a potential lender. Say maybe 1/2 the loan is insured. Would be tweaked once an idea of how many loans actually go bad is calculated. With some type of limit on the loan, probably less will go bad. A future thought might even be that if the insurance pool seems to be growing then instead of reducing fees maybe the insurance fund can give out short term 1 game loans and interest/fees retained by the fund. (I like that)

If loans are given from member to member in any other format than the "S&L" it would be totally at their own risk, end of statement.

I have been here for 3 months and saw a frenzy occur with some new members coming in and swinging a big stick. They would borrow and repay a few times providing some comfort for the lender and then borrow..borrow and boogie leaving someone else holding the bag. Not good for ayone. But there is a good core of members that really appreciate and find value in a smooth running liquid system. And therefore beneficial for all to figure out how to make it work the best with some controls or it will end up just like the real estate market or any other boom and bust scenario. Loose credit kills.

By theory, site profits are devised from the creation and expiration of points. Points are created through survey functions or purchase from one of the approved vendors. Points are expired when redeemed and used as tourney entries. Hence loaning for the purpose of entering tournaments is a good thing for the site as more people can enter (great number of expired points) than if points were not available to them. Then there is an increase in incentive as points are necessary to repay as well as future tourney entries. If there are 4 PO FR's a day @145 then 580 are required to play in all. Some reasoning for a 600 point loan cap or maybe 1000 to allow for some betting/llb's. Beyond that, the client is to facilitate interest of members and provides no profit to the company. Most lending abuses come from 2 factors, PO client losses and extra large LLB's. Neither of which benefit PO monetarily. If someone wants to have big action in these areas they should be able to shoulder their own risk to do it, not borrow in a system of little recourse.

To this end, YES it would be great to get something accomplished in this area and I would be happy to give further input.

[Poof]

I think it should be at your own risk period, otherwise it gets to crazy.
Once they go debit, they don't care and the site is out, that is not fair.
I do not know of any site that backs bad loans for ppl who get burned, they are all at your own risk.

[Drywallman3]

Well after giving a little thought you could make a page similar to the staking page but for loan requests instead. The borrower can put out a loan request with terms including principal desired, total repayment with interest broken out and adjustable for counteroffer, and stated repayment date. (if not paid their account goes debit) Credit history including qty of loans perviously taken and feedback included. Then like in staking, the lender can peruse the loans or consumate a pre-negotiated deal. There can even be a maximum transaction value (600? 1000?) and a limit such as a new loan cannot be requested before the 1st loan has been repaid.

Furthermore, there could be a negotiation function. 3 buttons displayed. Accept/Counteroffer/Decline (while decline is only active in counteroffer mode). Hence a lender can peruse and accept outright, counteroffer at which time the borrower can accept or decline...killing the loan request.

.................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. ......................... Maybe something such as 6%-8% of principal. Hence a 500 pt loan generates 30-40pts of insurance premium (15-20 from buyer and seller) . 10-15 loans made absorbs a bad one. A system that allows for recovery provides some comfort to a potential lender. Say maybe 1/2 the loan is insured. Would be tweaked once an idea of how many loans actually go bad is calculated. With some type of limit on the loan, probably less will go bad. A future thought might even be that if the insurance pool seems to be growing then instead of reducing fees maybe the insurance fund can give out short term 1 game loans and interest/fees retained by the fund. (I like that)

If loans are given from member to member in any other format than the "S&L" it would be totally at their own risk, end of statement.

I have been here for 3 months and saw a frenzy occur with some new members coming in and swinging a big stick. They would borrow and repay a few times providing some comfort for the lender and then borrow..borrow and boogie leaving someone else holding the bag. Not good for ayone. But there is a good core of members that really appreciate and find value in a smooth running liquid system. And therefore beneficial for all to figure out how to make it work the best with some controls or it will end up just like the real estate market or any other boom and bust scenario. Loose credit kills.

By theory, site profits are devised from the creation and expiration of points. Points are created through survey functions or purchase from one of the approved vendors. Points are expired when redeemed and used as tourney entries. Hence loaning for the purpose of entering tournaments is a good thing for the site as more people can enter (great number of expired points) than if points were not available to them. Then there is an increase in incentive as points are necessary to repay as well as future tourney entries. If there are 4 PO FR's a day @145 then 580 are required to play in all. Some reasoning for a 600 point loan cap or maybe 1000 to allow for some betting/llb's. Beyond that, the client is to facilitate interest of members and provides no profit to the company. Most lending abuses come from 2 factors, PO client losses and extra large LLB's. Neither of which benefit PO monetarily. If someone wants to have big action in these areas they should be able to shoulder their own risk to do it, not borrow in a system of little recourse.

To this end, YES it would be great to get something accomplished in this area and I would be happy to give further input.

Very well thought out, I wish I had the brains to put it as you and Zab have, I did try to do something to these effects. I believe with your help DAY this can work and maybe some backers to help with loans that have fallen through to keep the funds available for the ones who are good on paying back debts.