Bitcoin Forum

I've been having some interest with lending BTC here on Bitcointalk.org, it's a very risky investment. I realize this already and have accounted for.

Having valid collateral is a must to reduce risk lending bitcoin.

Here's where I need an suggestion or opinion!...
There's always users requesting loans without collateral, what do yall think of this.

"If the Borrower requested a loan without collateral, they could have a Default trust/Trusted BTCTalk Forum User with excellent Reputation either Vouche/or Co-sign the loan agreement?"

If the member is DefaultTrust , trusted or from the staff then the chances that he is going to scam are unlikely so I see no problem on giving the loan as long as the user don't have any current scam accusations against them. Try to valuate his account worth as well because If the loan request amount is much higher then his account worth then you should definitely ask for a collateral.

Good to see that you decided to open a lending service on this forum.I think you should not give loan without collateral.But you can trust DT member by checking their work history.Also you can see their trust setting and all feedback.I think lending service is a big challenge for anyone, and you are just Jr.member.Best wishes for you.

Yes, a thorough investigation examining the forum accounts is a must

It's indeed a risky business and a collateral is a must,because we do not know every one here personally,some lenders ask for the equivalent from other altcoins other their account,but if you set it up right you are in for a profit it's much better than trading.

Yeah I've started brainstorming about different options for all types of loans I'll be offering. I'm going to have to take the risk lending to borrowers, depends on the Level of Risk and ROI. This will make or break me im reckoning. Hopefully Im not blinded by greed and can stay conservative to make steady profits/ Over loses

No collateral?

A cosigner is a good idea, that way you can mark the trust of both. However marking negative trust on an account is only valuable if the account has a long history. A newbie or junior member is too new, too easy to buy and discard. You could also make part of the agreement that defaulting on a no collateral loan results in negative trust 2x or 5x the amount loaned.

You should also make the interest high and repayment term quick and the max loan amount low. The goal is to not to encourage customers to engage in no collateral loans.

i will discourage you to enter on this type of business. First of all, the only common or majority of collateral here is account on this forum, but in contrary it is forbidden to sell account because you will be tagged by DT with red tag, so it means that you will be in loss if someone borrow you a money and forfeited with their loan, there are many cases here that have same scenario. The only thing you can recover your loss is to sell the account in private and that the DT won't see the loan application of the forfeited borrower.

Good luck to your lending plan, but the question is those default trust member will have their time to vouch or co-sign for a guy that wants to loan without collateral? Because their name can be included if that guy will fail to pay you. Better to avoid headaches, just don't give loans to people that will ask you loan without collateral.

Having Collateral is strongly recommended. Default trusted members won't risk co-signing on a loan if they think the Borrower is going to default. I don't believe they would risk they're reputation on something of high risk

Collateral i think is a must. Because theres a lot of scammers around this forum. You know, just for assurance that your client will pay back for what they owe to you. I saw someone that offers loan with no collateral. I just dont know if he was successful running that business here. Collateral is highly recommended. Its for your safety.

Without collateral, people must be very generous and enjoy handing out BTC knowing that all they'll get is an IOU for a repayment

If you want to give solution to those people who are asking loans without collateral, that isn't going to work as business.

It is not going to make you productive to have this type of lending service but if you really want to make this happen.

It's going to be on your part to just give loans to those guys that has reputation in the forum which I think is your responsibility.

Well. I don't believe accepting  bitcointalk user accounts as collateral would be a great idea would it? Don't those defaulted user accounts from loans get red flagged?

I agree its better to stay away from no collateral loans as they may be a draw back for someone that just got into this business besides if they are trusted their should be users who they befriended and will easily fill their loan.
And if you will be accepting accounts you need to make sure the account is in good standing and set high rates too.

Yes, there are always people requesting money and very few of them have proper money management skills (or they wouldn't be asking). Unless you can put up with chasing people for money and accepting losses, you should probably steer clear. I doubt even the best money lenders are making much because it is too easy to vanish online and never repay your debts.

I believe it, you have a valid point. Maybe it's best for myself to sit back and take my time with my decision on what I'm going to do next. I will figure something out.

Thanks everyone for your Input.
Much Appreciated

If you are tending to make a lending business the no.1 rule should be asking always for collateral,if theres none theres no loan and dont really be too kind because here on online world you cant be sure to the people you are dealing with and speaking of money scammers are always there so better watch out.

In my opinion it's not a good business. Here on forum it's too risk to lend money and you will need to take accounts as colateral and I know some members of this forum had their trusted negatived because the colateral accounts.
Nothing you can do about it later after your account is negatived. If you want to lend money use Poloniex.

Polo niece? Never heard of it. I'll go check it out sometime

I don't see the point of a cosigner or guarantor because it could just be an alt. If someone is trusted in the bitcointalk community you'll know it and not have to worry about a vouch or cosign from someone else trusted. Also, you always run the risk of having the account tagged because they defaulted on a loan so that's another issue you'll need to worry about.

I think that BTC lending service is very profitable project , but you must take collateral from new members and make the maximum lending amount for new members of low rank and this forum and when you take the collateral if the member is a scammer you can sell the collateral who must be more then the lended amount
about high member rank you can trust them by checking their work history or the trust history
Good luck in your work

I partly agree with you. But in my own perspective. I think it is best to have a Collateral in every lend you make. In this case, you will minimize the risk of scam since they will loose more amount than you have lend to them. Even if they have a good reputation there is still risk of scamming.

But, it also depends on the situation. If you are going to lend a trustworthy person, no need to worry about collateral. Just make your transaction public so that you will have a reference in case that person runs away.

Lending bitcoin is one among the best profiting access for bitcoin users. With these kind of service the risk is very heavy than making investment. Because with these services several people try to scam the newcomers with collateral.

Yes its really profiting business but the risk involved is really high which you have said also but there are still people could able to handle the risk. Collateral does really need always when you tend to lend money to someone because you could somehow assure if incase those borrowers would ran off and not will pay the loan on due date.

Collateral is most important part of the lending business but I would like to suggest in that in Starting offer Interest free loan.. with that you'll get some permanent customers, interest free loans always attract users. with that you'll get more clients.

do not start a btc lending only if you know what are you doing, otherwise you'll get scammed by a ton of people.

Yeah most of the people from Btcjam they just apply and get the loan from the loaners and they just ran away. I think lending process is the not a best way to make a bitcoins. I think op could choose trading or signature campaign.

And why not just pursue that way of lending because lending without collateral is surely going to give you headaches, believe me. Let's say they aren't going to risk their reputation but some of them doesn't want to have headache too. Though I'm saying that always on the safe place is going to be the best choice, but with co-maker or co-signee it seems that DT's rep are the collateral, for me that is not going to work out.

I think this is an investment with potential. But for you to succeed, you need to gain investor confidence. For this you will need a good collateral, and also a good marketing, so that people know your service. All of this, of course, requires capital, efficient planning and a good study of risks.

Yes, lending services will give higher profits and at the same time there is big risk involved in it. But i don't how this service will be successful with the new comers and even with people who are lending bitcoin. In what way we can offer this type service to people so that both of them should benefit.

Yeah accepting bitcointalk accounts as a collateral is not going to be a good thing for you. There are even more collateral that they can use.

There are alt coins where you can use to hold for them upon borrowing loan for you. And there are DT's discouraging the use accounts for collateral.

You can just show proofs of defaulting with DT's and they'll tagged them out.

Even though making accounts as collateral is prohibited but still we cant stop anyone who will use it for their loan purposes and you are right i dont think these accounts are even worth to make as a collateral unless if you have a legendary account then it would do give some good loan amount.Collateral must be needed which is more valuable to the loan that you have borrowed.

It's hard to regulate this way of lending and there are a lot of people who are using their accounts as collateral.

And if op will not implement this type of lending surely he is going to be a good contributor to prevent this way of lending.

easy avoidable by requesting the corret collateral, and maybe avoid account as a collateral and only request altcoin for example, the best oen that do not lose value quickly

i would say that with escrow account can be still good to accept as a collateral

I don't think it is that profitable and that easy to do. Think about it, there are tons of lenders in the bitcoin lending section. You have to compete with them. Then think about it, they just earn only a few bits of coins then when they get scammed they lose a substantial amount of money and they have t offset this with their earnings. Sure they have collateral, but that might somethings not get sold or becomes worthless at some point.

I will discourage you to do this kind of business.Why?one thing is its too risky to do this lending on an online forum,yes there are trusted members here but always remember that scammers are just around, even with a collateral some are just defaulting a loan from someone here

Are you related to DarkStar_ by any chance? I know DarkStar_ is a lender here and he has his own lending thread over at the lending section. So, I thought you might be the same guy. Yeah, I agree, plenty of borrowers just default loans even if they have valid collateral.

Good to see that you offer this kind of service though it is not knew but the trust you gave to people here. But then be careful to those people who are really veterans on scamming money, they are just around trolling. Lending service requires a lot of attention so no one can scam.

Save yourself the trouble and the headache and never give a loan without a valid collateral, the ones asking for a loan will obviously try to get the best terms possible but you need to lookout after yourself first if they don't like the terms they can always try someone else to fulfill the loan.

i think its not good idea to start lending service in here, no offend because we need to verify the person first, he is trust or not, although he is a trust member, have reputable, this is not guarantee that he can give the money back. like in page one i've read, if you want to lending your bitcoin, i think you can visit in btcjam or polo in lending section, you can always lending your bitcoin to traders and the risk is not big than you start your own lending service.

I don't think DTs will allow themselves to be used as part of a loan in this forum. It's hard to reach that status and with just a loan that they Co sign that might ruin their reputation. However, you might also encounter a DT with an alt (not saying there is, just playing devils advocate) and the alt will be the one to borrow with the DT playing as the Co maker.

I guess a little competition will be good for the lending business, just wondering why you targeting the no collateral users though? Hope you not getting into it to farm reputation ?
Wishing you all the best.

What are the requirements in starting BTC lending service? Is there need a pot of money or just a income of your properties in btc world? Do you screw here to monitor you lending service or just you who monitor your lending service?