Topic: Seeking trading capital and business loans (Read 1773 times)

Well the buy back has been the bottleneck in this strategy. Normally my sell volume is considerably higher than my buy volume. To offset this I have been doing research as to where I can buy coins from on a regular basis at stamp or below. For example, the local cash trade in new york is such that even new guys don't pay higher than 1-2% above stamp. I am actively trying to build relationships with users from that market. Eventually I would like to open a branch in locations like that so I could have employees making buys for me on a regular basis.

The real reason I asked for shorter terms was to build a rep. I see this as me putting in work(maybe taking a little too much risk) now for higher interest at shorter terms so that I can later get larger loans at lower rates and much longer terms. At that point I would have established a clear history of repayment and can gradually drop my interest rates and lengthen terms.


The way I am trading the volatility(downward trending market) doesn't matter as much. If I am selling for cash deposits I can sell at +8% consistently and have access to the cash for buys pretty much immediately. I normally have my buy ads running at -10% to -5%(current running at bitstamp because I ran low on coin) and have a couple go to guys that I can buy from at any point for stamp to +2% for cash deposits. If the price happens to drop more before I am able to make a buy I've profited on my btc loans by default.

In an upward trending market I plan on using icbit to help secure my sells. This will require more research on my part but essentially if I sell off 10btc today I should buy 10btc worth of futures contracts. I could also theoretically do this for a downward trending market and sell contracts.

Basically I plan to reset daily so the price from day to day shouldn't matter as much. If I sell off 10btc today I need to make sure I buy back a minimum 10btc today.


I want to essentially be a fixed btc-exchange and offer users to loan the company funds directly(and eventually borrow from me) but an open system that matches loans to transactions is a great idea!

US - Missouri and I was going to go with a llc

You are 100% correct here. This is a problem that I had not really thought of because for the most part things are running smoothly. I am always open to new ideas on how to improve and protect my self/my investors.

That seems like a more than reasonable request. I could send some from the csv export from the lbc dashboard?

I have, in the past few days, been able to obtain a quite of bit of litecoins which I. I am thinking either to convert it to lend or to keep the litecoins and watch it do its magical nothing all day. I am writing to you as a potential investor and would like to know about your revenue stream, two risk factors I perceive, and the business infrastructure you are forecasting.

1) You mentioned trading as the main purpose of your loan. However, I noticed the length of time between loan origination to maturity is less a month, which only makes sense if you have trading counter-parties already lined up. Is there other forms of trading your business engages in? If not, how does your business model maintain the type of traffic that is needed to replicate or increase past customer traffic to your LBC listings? In other words, how can I, as an investor, be reasonably certain that, going forward, you are able to maintain the necessary inventory turnover rate to pay loan and interest? This is the first risk factor I would like some clarification on.

2) What trading strategy are you employing to hedge against the volatile bitcoin/usd ratio, which is crucial to ensure my loan (for the trading side of your loan) is protected? Even if you make great 8-30% margins on LBC or elsewhere, getting the fiat into BTC can have additional fees that eat into your great margins, and volatile market prices will definitely be a gamble. This is the second risk factor I would like some clarification on.


Business loans:

Yo mentioned:
 "I plan to allow users to buy/sell bitcoin directly to/from my company and have a method for lenders to track their loans to/from the company."

Those words are music to my ears. But I just wanted to make sure I am understanding this properly. Is this a move toward establishing a direct competitor in the fixed-btc exchanges (like bitsimple, local bitcoin) or is this a move to limit the liability and create transparency by having an open system to match the loans to the actual transaction it financed?
Also, which state/country will this llp/llc/s-corp/etc. be incorporated in?


I think the amounts you asked for makes you severely undercapitalized in cases of emergencies or business downturn. When I used to valuate businesses of all sizes, I noticed small businesses failed at such a higher percentage vs. middle - large sized businesses. My managing partner always mentioned to me that the reason small businesses have a hard time getting a loan isn't because of their revenue stream or business infrastructure. It was because they are always one accident or one unforeseen issue away from failing to to meet loan obligations.


I'd like to see a small sample size of these trades you do and verify them, and would like to get my questions addressed. If not and others are willing to finance you, ignore my due diligence.

I misread your post. That is actually something that happens fairly often. I try to keep a close eye on my btc account balances while keeping payment due dates in mind but sometimes I over sell and have to rush to cover. As soon as I get this automated(loan payments and balance monitoring - working like a mad man on this) that will be a problem of the past

That could be happening but it is not. I can provide proof of account balances(btc and cash) at any point if you wish. PM me for details.  I am not goxing people lol.

Thanks for the investment and thanks for the offer

Just to be furtherly clearer.
I'm already one of your investor @BTCJam. The service I'm offering here is more a liquidity supply.
You could need to cover due-dates (as yesterday for example), because you're simply waiting for incoming cashflows that are not available yet.
I'm offering here, because I can ask for collateral where @BTCJam is not possible.
That said, my door is open. If you need help, you're welcome to open a contact.
CC.

You understand the concept of business capital for growth?

Let's say each week you can buy and sell making about 25% but you will have to wait to flow the capital and of course waiting for opportunities of buying and selling. What if you have to buy a little bit higher and selling more? Your profits will certainly increase dramatically with all the of the injected capitals. But I mean it's up to you as you're fine at the moment like any other people. No need to make any loans, no need for capital for growth. Do it that way for 20 years and see!

I have had a couple people contact me and I would like to make something clear.. I do not "need" this loan. I can continue on as I am doing just fine without it. I never "needed" any of them.

I take the trading loans and sell the btc at high markups(8%-30%) at localbitcoins.com(and in cash in 3 cities via 'trade partners') and then buy back in bulk at awesome rates(when I can find them lol). For me the added capital means more profit but I don't necessarily have to have it.

I am sure that there are a lot of people scamming here just like there are everywhere else but I am not one of them. I can and will wait for something I feel is right.

Hi.
Have a look here:
https://bitcointalksearch.org/topic/lendingescrow-1-btc-liquidity-1-to-1-open-524622

CC.

pm sent

We can talk but collateral is the best https://bitcointalksearch.org/topic/trusted-reliable-fast-paypal-btc-es-codes-cash-deposit-wire-mgwu-524457

In this ad I am asking for two types of loans - Trading capital and more long term business loans. I have been trading mostly at localbitcoins.com(https://localbitcoins.com/p/tomfoolery) and in the last 2 months and 3 weeks I have completed ~350 trades with ~200 people and have maintained 100% positive feedback(Confirmed, Unconfrimed) and 19 different people have chosen to trust me.


I have been working 16-18 hours a day 7 days a week and have literally been putting everything I have into establishing a business centered around bitcoin and bitcoin trading.

I have already had several trading capital loans and have paid them(or in the process of paying them back). 3 of these loans have been via my btcjam account. I have no record of the countless 1-7 day loans I have had from various other sources.

I can not say I have been on time with every payment but I have always been reachable and always repaid my debts(plus late fees if applicable). Trading capital loans have a little higher risk(risk of late payment not loss) while I am working with limited capital and that is why I pay higher interest rates for them.

Thus far I have been taking my profits from trading and using that to fund research and development but this approach leaves me spread a little too thin at times(mostly due to limited capital) and really prevents me from getting the most out of trading(compounding interest). I feel this is good overall strategy for explosive growth later on. The research I have been conducting ranges from finding areas with high volume local trades(so I can establish a branch in that city) to possible industries to approach who have issues with traditional banks.

A quote from one of my regular lenders

The business loans I am asking for will go directly towards formalizing the company and development of the company website and will be repaid from the trading profits. I plan to allow users to buy/sell bitcoin directly to/from my company and have a method for lenders to track their loans to/from the company. I plan to nearly mimic many of the features available at btcjam.com. I feel that this strategy has many advantages over using more traditional lending sources.

I am willing to sign(and have notarized) any documents detailing the loan a potential lender would require.

Trading Capital Loans:
(seeking up to 10btc total - I feel my trading more than justifies this)
terms 1 day to 15 days
interest: negotiable

Business Loans:
(seeking 3btc)
terms 30-90 days
interest: negotiable

Any questions, comments, or suggestions are more than welcome.