Soc offering Loans

Myself and some of our soc group were toying with the idea of offering loans to other players. It would be based on trust and the idea was that a player would give us an item of higher value than they wish to borrow so lets say their armor is worth 800 ped we would lend them 500 ped and keep their item untill they repaid the 500 ped + 10% intrest. there would be a lot of trust involved on both sides, our Soc would want to keep its reputaion.


So what are your thoughts on this good bad indiffrent

thanks

Mike

 

Thanks for the positive input guy's. One of the reasons of lendiing slightly less money than the iteam is worth is if the person does not return we would still make something from the deal maybe my example was a bit too large gap between loan and item value say 600 Ped item for 500 ped loan. I apretiate we would not have any support from MA

And the person loaning would be taking a chance however if we stared ripping people off word would get around and we would effectivly kill our own buisness :(

So the plan would be to start with small loans and see how this went first, maybe a max of 200 ped on weekly or monthly term @ a fixed 10% - 15% if this proved successfull over a six month trial then we could try an increase in loan amonts and trial this.

I would like to have some kind of buisness within entropia but I can't afford $20000 for a shop + stock costs :) so a small loans buisness would be a way of doing buisness withough a huge expence. as the buisness grows then who knows where that could lead. besides we have loan companies in the real world and entropia is all about new opertunities.

again thanks for the input I will keep you posted on any future developments.

Mike