Topic: Seeking a loan of BTC, offering collateral (Read 265 times)

PM me with your location, i would probably go with 0.10 BTC loan for S9+ as collaterall as its only item im sure ill sell easy if no repayment.

The reason why the lenders won't accept this kind of collateral (phones, cars, etc...) is the following:

Let's say that you give your car as collateral and get a loan in BTC. As you know, BTC is extremely volatile and it can have a spike in price in a matter of days or hours (it can double or triple it's fiat value in a week, not likely but it is possible). In this case, the lender wouldn't be able to sell your car fast enough and when he finally does, even if the fiat value that he received is 20% greater than the amount he lended you with (in fiat), he would be still at a loss in BTC. In this case, he can't do anything to recoup his loss.

On the other hand, if you provide altcoins as collateral, the lender can keep the collateral on an exchange with a sell order at 105%. If the collateral value start to fall regarding BTC, then you have the option to top up the collateral so you are in the range of 120%. If you don't top up the collateral and the value decrease any further, the coins will be sold at 105% and the lender would still be in profit.

I hope you understand now why accepting physical goods as collateral on BTC loans is extremely risky for the lenders. And one more thing, nobody wants to go trough the hassle of the paperwork involved in transferring the ownership of a car.

As an advice, as other suggested, your best option would be to go to a pawn shop with your goods, in case you don't want to sell them.

Good luck with your project.

Alright, I think I get the idea.

The loan seemed like a reasonable option.  I am profitable but growing slowly, and need a source of BTC to grow it steadily over the next three months or so.  It's a small project and doesn't need much.

I would rather keep my stuff, and have the profits pay out the BTC loan, expected to return the amount within three months based on current earnings (it is a small project, and I was looking for 0.1 BTC).  So that was my thinking.

I don't mind the 120% or what I can offer instead of selling up what I have; it's worth more than 0.1 BTC so I could grow it further after three months.  I get your reasoning though.

Thanks again.  That was very helpful.  Maybe I am just not really cut out for business.  I should perhaps avoid loans and just sell my stuff to fund it, but I like to hoard my stuff and keep it.  So it was a little conundrum for me.

It was only a suggestion and to clarify; I was presuming that if you have the money from selling the goods you could use that to fund your project, and you would not need a loan.  As a benefit, you'll have 100% of the value of the goods instead of only 83%.  Typically a lender will want the value of the collateral to equal 120% of the loan amount.

Thank you for the explanation.  I just had a message from a gentleman in California who was willing to have a look.  He said my collateral would be far too cumbersome.  I'm in Australia after all.

So, if I offer the phone, it must be activated now for the lender?  Is that how it works, essentially so borrowers can't run off with the collateral and steal the loan funds?  And the car transferred in the name of a local lender if he accepts the car, so it can't be damaged, stolen, etc?  Same I guess for the laptop, I have a couple so I figured it would be reasonable for collateral.  And somewhat easy to secure, at least for someone in Australia anyway.

So, the best option is to sell what I don't need (two phones, two laptops, don't need them but would like to keep them...), guitar, even the car?  Then what will I have as collateral if I do this?  Unless I transfer the phone and laptop into the custody of the lender so he knows he has it if needs be?

I'm sorry.  All this is a bit confusing for newcomers.  I still don't understand why I would sell what I don't need and buy it back later, when I need to put up some collateral.  If I sell, no collateral, and no small loan for my project.

Condoras is being skeptical, and rightfully so.  There are a lot newbies that show up here and ask for "loans" and offer collateral that they really would prefer to sell.  Taking a small hit on the value of their collateral could be a small price to pay if the item is hard to sell in a timely manner.  Don't take it personally; any body who offers to fill a loan on these boards should enter into such an agreement with a healthy level of suspicion and scrutiny.

Some of the collateral you offered would be really troublesome, and may require some expense to secure as honest to goodness collateral.  For example; If a lender accepts a smart phone as collateral, the phone must be activated by the lender before he can be sure it won't be reported as stolen and subsequently bricked.  Obviously the car would be a similar situation.

I understand your reluctance to go to a pawn-shop; they will only give a small fraction of the value of the goods you pawn.  That might not provide enough money for your project.

My suggestion is to sell everything you don't need, that can be replaced in the future.  If you are confident in your project, you'll be able to buy that stuff back later down the road.  Just a suggestion, worth everything you just payed for it.

Best of luck.

Why do you say that?  I'm offering collateral, I would rather not sell anything.

I was under the impression the collateral offered would give me chance.  I'm getting mixed signals here.

If you're such an expert in my psychology, please feel free to explain.

Sorry to say this but seems like you want to sell your stuff, instead of putting them for collateral.
Collateral will be return to you if you repay, so the pawn shop would be the fastest and safest way.

You still though continue to offer new things like it's a bazaar or such...

I also have an electric guitar, amplifier and mic.  It can bring the house down for those that like to do local gigs.

Maybe someone can offer advice on what lenders are looking for?

I suppose I could give up my baby, my Innosilicon A9 Zmaster at 50k/sol which makes roughly $150/month in profit even with insane electricity costs (20c kWh), if this is a better offer of collateral.  It's new and worth about US$2500.

So nobody I take it wants my Mercedes as collateral.

They have an unfair rap I guess.

So I will pawn my stuff or just over those as collateral, plus an extra 0.06 BTC (~ AUD$300) on top of the wanted interest payment at conclusion?

Fair enough, if you've had bad experiences with them in the past.

Mine is regularly serviced and runs like a charm.  They are not generally unreliable.  Most people do not seem to keep them serviced or look after them.

But okay.  Not for you then.

I wouldn't pay $1 for that mercedes benz, those things are extremely unreliable and cost a small fortune to fix.

A fair question.  I can do that.  My question is whether this looks better (pawning my stuff I don't need) and just offering my car as collateral.

Just a simple and very common imho question:
Why don't you go to a local pawn shop and put up only your car? Please don't give the answer "they will not pay you in BTC"...

Hello,

I am looking for a small BTC loan.  I offer the following as collateral:

1 x New Samsung Galaxy S9+ phone (probably worth about $500 second hand, but it's in brand new spotless condition)

1 x Second hand recent HP Envy x360 laptop (retails for about $1700, probably worth $900 second hand, but it will likely sell for $700 quickly) - 4 months old, top condition and well looked after by a professional programmer and Web developer

1 x Mercedes Benz 2000 model C200 Elegance motor car, registered and in beautiful condition.  British racing green.  Original condition, no modifications, spent $2000 recently on servicing, has spotless leather interior, sunroof, electric windows and mirrors, drives beautifully, 4 cylinder 2.5, packs a punch for a little medium sized sedan, a pleasure to drive.  Worth about $1500 because it's getting old and has 250,000 on the clock.

All collateral is in my name and under my control.  I offer these items or any of them for a loan of BTC that you believe is reasonable for the collateral offered.

Please PM if interested.  I am willing to post more collateral upfront such as the laptop or phone if you require a bit more of a safety net, so long as it can be returned to me upon repayment of the loan.

I am looking for a loan term of three months before full repayment (partial repayments before the end of the three months).