The Dreaded Loans

[Guest]

Yeah, I know, I could almost sense you rolling your eyes as you saw the subject...

If a member of Admin could tell me if it's worth me spewing my thoughts, please do let me know.

I know many players wanted it, many players did not, but those who didn't want it felt that way because of the conditions being misunderstood.

I've come up with a revamp, and if the big guns of Kapilands are interested, I'll roll off the ideas, for feedback.

I look forward to the possibilities of resurrecting a long-lost drama-topic

[Guest]

Im always up for a bit of fun, and im sure even the dissenters will enjoy the inevitable ranting that will spring up somewhere here =)

So go ahead, and I say to anyone who is thinking of bringing up the standing reasons for no loans just ignore the topic and we all go home happy

So whats your take on loans?

Oh yer, and are u on R2 boogy?

My 2c
H

[Guest]

I am on R2. I did consider playing R1, but thought that having two accounts on the go would slow down my pattern of thinking, and make me go grey prematurely.

I have no real issues to players wishing to state why 'no loans' is a great idea... But I'd hope they can effectively point out any flaws in productive ideas as reason for their views.

[Guest]

We can build a loan market with coins...

Some big player buys your coins when you need money, and sells them back to you when you wish so. (note that the coins price will go up by itself, so the big player will have a profit for it.)

[Guest]

OK, a little long winded, but I squashed it down the best I could.... These are the basics of the idea.
Please let me know of any flaws I missed.

You select a number of buildings that you own, and The value of the selections dictate the loan amount.

You then get offered a selection of 3 possible repayment solutions. 1 Month, 3 Month, and 6 Month; each with a weekly minimum repayment amount. (I see no harm in the deduction from your account being automatic, saves the 'I forgot' problem). This would also show the interest rates, with a clear view of how much must be paid each week.

If a payment is unable to complete due to lack of funds, you are sent a warning message, and then, either double the amount is deducted the next week, or it 'stockpiles' towards the final payment. I personally prefer the stockpile option.

At the end of the repayment duration, if applicable, 'stockpiled' outstanding amounts are deducted, and the loan arrangement ends.

If the payments are not completed, at the end of the duration, all the buildings you selected as part of your loan agreement, are 'disabled'. An additional fee for each building is added to the final amount.

To retrieve the buildings, you simply pay off your outstanding debts. This time, however, it should be done manually.

Only one loan can be taken at a time. No further loans can be taken until the previous has been completely repaid.

The step-by-step pages should have the basic t&c's written above the option selections, with further details underneath.
This way you can get the basics of the arrangements, and have the option of scrolling down to understand all the 'technical' aspects.

[Guest]

What if I put up all my builds? How do I make cash if I fail?

My 2c
H

[Guest]

Then I suppose, to prevent the chances of stupid 'mistakes' like risking everything you have, you could disable the selected buildings from the start of the loan period. That way, you'll think more clearly, if you're going to not have the building at all until you repayed the loan.

That sounds like a much better set-up to me. Naturally the bank would hold onto the properties from the start of the agreement.

This could then, perhaps, include a cancellation period of a short while, perhaps 12-24 hours, where you have the option of completely 'cancelling' the loan, under the conditions that no more than 25% of the loan amount has been used. (that would prevent loaning, and cancelling, to make quick pennies).

Does that make sense?

[Guest]

my take on loans are that we re-use the old system but have a huge warning sign syaing the thing is buggy. Though admins have made it clear it is a no goer. Unfortunately the main problem is how to value a building. What I mean, to the syatem a building is only worth it's FA, to player it is worth building costs with all materials included (Prices differ on how much all the stones wood and steel cost so even more variables for any software) or how much a player would buy it for. Here is my example

Furniture Store Maxed, Red, realm1, lvl trillionaire, buying building materials from NPC.

FA Value: 307.378 Million
Cost to build: 1.154 billion
Player Value: at least 10billion

So what valuation do we use? The only real one that works is FA value because it is fixed for everyone but it is worth pennys and so you would need to secure a lot of buildings for a decent sized loan.

[Guest]

It looks like you're right.
There's almost no support here, for, or against the loans idea. Might be because I specifically asked for some standing from staff, but not to worry, eh? I think their involvement so far on this thread says it all. As my grandmother used to say, I'm trying to resurrect and old, past-it goat, that everyone was planning to shoot anyway.

Yeah, I never saw her on catch-phrase.

[Guest]

Yup, that goat is pretty much bones by now, still its always worth a crack.
For my own butt-based-crack I think that a peer-2-peer system would be best where the interest rates are fixed to the level of the loan 'buyer' and the risk is assumed by the 'seller'.

Ok this is gona be pretty dry sorry, hope you can hold on...

Access to capital early on allows for smaller players to invest into side industries. So to make an example of greedie he wants to make kapi stink I little bit less, game and smell =) But his foray into perfumes would have cost a bundle to transform the whole company into a whole other sector. This is because he cant rely on other players in the industry to support him as he grows so he hast to buy up the whole production line! But if smaller players had access to a capital market they could grow into an industry fully, even if its not fully integrated into the mainstream far quicker that otherwise possible, increasing diversity in the game! Yay we can finnaly stop whining I little tiny bit =^)

The other value in a capital market is a massive benefit in combating inflation from newer players since the traditionally long slow push from production to sale is increased, it works 2 fold, the ability of the super-masies to spread the wealth will discourage them from 'playing' the coin market and increasing inflation there (bad for pretty much everybody including upjers) but also the smaller players are able to move a a pace that reflects their true capacity. So they are no longer constrained by the, make cash..expand cycle but can expand as fast as their ability to pay off the debt. SO they will invest in the production industry in a vast way, think power producers moving at several k expansion per day rather than a week.

Yes there is room for abuse in this system since amounts wont be fixed. SO I offer this encapsulated option.

A tiered system of interest tied into the level system so for example merchant cant only be charged 1% on any investment, retailer 2%, Trader 3% and excreta until a very high level such as billionaire where the rate becomes up to, lets say 20%. These are simply samples and can be changed ect ect

The loan-ee can ask another player for a loan at the percent he/she is rated at. This loan can then be (dis)approved but the amount is NOT limited at all.
Only 50% of the FA can be put up at any one time. So if I had 60 plantations at the same size I could loan out 30 of these at any amount I can get accepted. But if I have 30 plantations and 30 jewelers of the same size then I could loan out all 30 of the plantations and a number of the jewelers as LONG AS THE FA put up for loan is the SAME AS THE FA LOANED OUT.

Each building is a loan within itself and if the loan is defaulted on then the building is forfeited but even if the loan was for 10 times its market value of the build itself no further obligation would be owed. I hope you get the idea here, the entirety of the risk is born by the provider of the loan but even if the smaller player defaults on all their loans their still have half their FA left in production ability.

To prevent players asking for large loans with no intention of repaying each player will have a credit score, if a default occurs then it will show on the credit score and will remain until it is balanced by loans completed, again its the risk of the loan provider. IF he/she asks for another loan they will be unlikely to receive a large amount. It could also be linked to the current score situation....maybe

Defaults are at the discretion if the larger player at any time between one payment being missed and the amount owed being paid out. So if I missed one payment of $1m or whatever my creditor could chose to default me (stupid decision) or work with me to get repayments under control, once I repaid that 1m he can no longer default me unless I miss another payment. Thats to me a win-win situation.

The total loan amount will be deducted from my cash/FA level so I large injection of cash wont instantaneously throw a tiny player up several levels reducing their cost effectiveness.

Ill prob think of something ive missed out later but right now thats it, tell me wat ya tink!

My 2c
H