New Loan policy: minimum loan profit
Hello all,
As usual I find myself too busy and bogged down with work that I really shouldn't be doing in the first place, so I need to cut down on my work load. Thus this post.
All too often, I find myself loaning out 100 USD (or the crypto equivalent), and getting 110 usd back. Yea that's 10 dollars. I'm going to come right out and say it. This shit isn't worth my time. I make millions of dollars and often deal with six figure (USD) situations. I don't need to be busting my brain over 10 fucking USD. It's really that simple.
Sorry guys, I know there are a bunch of people that could really use these types of small micro loans, but I can't do it. I don't even care if this sounds arrogent to you, but yea, my time is valuable.
So my new policy:
Minimum profit required:
Low work loan: 35 USD
High work loan: 50 USD
So, to summarize this, for a loan that isn't much work, I need to be making 35 USD in profit for me to even consider it. And if the loan is more work (will talk about that below) then I need to be making 50 USD in profit.
So that means, I loan you 500 USD and get paid 550 USD back. 50$ profit for me, this is minimum, if you try to haggle me down lower then I just won't loan at all, not worth it.
Loans are work?
Yea, guys believe it or not, making loans is work. There is the original negotiation which can take as long as 30 minutes or so, messing around with keys, carefully sending money.
There is customer service, booking payments, people paying late or defaulting. Often I may have to monitor and check accounts every few days. Keeping track of profits, entering numbers into tax software. Clients bugging me for various things. It's work, and risk.
Lending someone 1000 usd and getting paid back 1100 usd is the same amount of work as loaning someone 100 usd and getting paid back 110 usd, but the bigger loan pays 100 usd and the smaller only 10 usd. If I'm doing this work, I wanna get paid big.
Low work loan
An example of an easy loan would be someone sending me Splinterlands cards into a holding account that I control, and then they just have to pay back to get the cards back. These types of loans are easier since they are mostly "fire and forget".
High work loan
- If you have Active key access to your collateral account, then this is a High work loan, because I have to keep checking it to make sure you are not powering down or unlocking the collateral.
- If you are paying me via powerdowns, this is more work, because I have to keep track of it.
- If I have to convert one currency to another, it's high work, and a pain.
- If you are constantly bugging me to do things with the collateral account, it's a high work loan.
- If you are constantly bugging me about anything, it's a high work loan.
- If I have to change keys or perform account recovery, it's a high work loan.
- If I have to change the recovery account, it's a high work loan.
Hint, most loans are High work loans for me.
Why don't you automate your loaning?
Wow, I would have never thought of that. Good thing I have you around dear reader. Yea these loans are pretty hard to automate or delegate (I can't trust some bot or other person with my account keys or client account keys)
If there is some platform that can do micro-loans (or any loans) in an automated way, I'll be sure to dive into them. Anyone know of any?
I have toyed around with things like Hodl Hodl (https://lend.hodlhodl.com/) but I haven't had a chance to dig into them too much. Maybe if I had some more free time (HINT HINT) I could look at these more.
And there you have it
Wish I had better news, but I need to do this. Already just general Hive and Splinterlands, and my Tribe and city chat keep me pretty busy all day. Frankly I'm desparate to reduce my workload somehow, and this is one concrete and relatively easy thing I can do to lower my work. So I'm doing it.
Exceptions
If I make any exceptions at all to this new rule (loaning small amounts), it will be to LOYAL city people (Neoxian City) in my chat group, who have city jobs and actively help me and my city all the time. But if you are an outsider or a stranger, you can forget it.
(image generated using Midjourney AI, used with permission for commercial purposes)
Posted using Neoxian City
I did not know that lending money was so much work, I got tired of reading everything you have to do.
I love how you've broken loans down into two categories. I think it is a good principle for lending.
With this, a 100 USD of low work loans will yield a different interest rate compared to a similar value loan requiring high work.
Posted using Neoxian City
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Thank you!
Thank you for the detailed info regaridng changes in loan policy. Hope, this change gives you a little bit of relaxation.
Al image looks awesome!!!!
Posted using Neoxian City
That can be so much work, checking out a loan account because some people can be cunning. When we do things to help others, the stress should be worth the time. Good one sir.
I really do hope the reason of this post is not my fault lol. Seriously speaking. Some people think this task is easy and doesn't consume time, "Oh yeah, you give me, I give you, profit, yeah" when it's not that easy when you have many users in your books and hopping in chat. Besides, taking care of the books consume time as well but I guess is part of the job but it has to be worth it at least. Once again I'm very grateful to the great bank of Neoxian and well, adapt to the new policies. Let's go Bank.
It's not all about you, but yes, you contributed to this post.
Thanks to the gods is not all about me, never wanted to be. That hurt a bit because despite all the trials and tribulations I believe I'm not the worst client you've had (and if I am, sorry) yet as always I appreciate your honesty. That's actually one of the things why I respect, maybe glorify you as a person and of course the great bank of Neoxian. Always grateful for your help, there's a kind soul inside the dragon, but not a dumb one. Cheers boss. Have an awesome weekend.
Most people do not value the efforts that are made when undertaking Hive, they believe that it is something simple. Everything requires a great physical, mental and time effort. It is important to take care of this because sometimes these workloads can diminish your health. You have done a great job and we need you to be 100% healthy.
You deserve what you are doing, thank you for sharing it.
oh god, I think it's time to get closer to the neoxian city, I'm good at some things, I can be of help...
It is great that you decide to divide the loans into categories and not remove them definitively, I am sure that what you do is a good job for the users of the community. Thank you very much for that...
Can anyone send me an updated post on how these loans and collateral work? @neoxian
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It's a good service to loan money. And charging 10% is quite reasonable !
You shall not loan anything below 350$ ever again.
Pretty fair! A lot of work for 10$ for a dragon, is like me working 3 hours on a post for 2 cents :P
In gist, it does add up to your cognitive load. Maintaining a ledger on a day-to-day basis is similar to what Banks do and they have their dedicated staff for that. So it's true it adds up to your workload.
Time is also a commodity. So I do agree with what you said.
But Sir, in the past also I have taken microloan from you. If you could consider a higher interest than the nominal ones for the amount below 50 USD, the common man would be greatly benefited. That's what I personally feel looking into my case and similar ones here in Hive. Anyway, I can say someone having an organized loan facility against a Blockchain-based social account like HIVE marks a new beginning in the fintech domain. So my only request to you is to just keep this facility open and running Sir.
indeed sir, the loan and the work behind that is really a headache for sure. 🙃 we were planning to start a small system like this but now one stands for that and to be honest, that was a thing of mine. I am already included in a lot of fo mess. not an easy job to maintain all the things.
you are really doing a great job sir and you deserve that for sure.
aha, the city people policy seems interesting.
Posted using Neoxian City
I love the new policy. I’m a fan of having control of you time and you get to do that. Good example for those us striving to do that!
This new loan police is really good
Love the new policy Sir yes considering how busy you are that profit wasn't worth the effort.
Good luck to the bank and its customers!
Great new policy!
You're right. I thought about making loans but discarded it for the same reason.
You described the loan policies very well. It will attract many interested individuals as it sounds profitable. Thanks for sharing 💖💝❤️
well excellent new policy and I don't think asking for 50 dollars for 500 dollar loan is a lot also because you need a lot of time to put all the things together when giving a loan
Wow...I love the new policy Sir, perhaps the work load might be reduced for you 👍
It is really ok with the new idea
The dragon's time is valuable, any idea that will reduce the work load is necessary and i love this your new policy sir
Posted using Neoxian City
Oh did not know that this requires lots of your time and you're right it's not worth if you're not getting a considerable profit on the transaction. Good that you clarified and if anyone is interested then he/she agrees to the new policy. Communication is the key and you did it. Appreciate it.
This no doubt is a cool idea in making a better profit.
This new rule is all good, however we/citizens are not included in it (Thanks Mr. Dragon)
You can also just shared the NEW RULE but you explained the reason in detail...
And at last, Neoxian Bank policy still a GREAT ONE 🐲🐲
Posted using Neoxian City
time is worth money friend and if you consider raising the loan policies a little more to obtain an extra profit since I imagine it is a hard job for so little income
Honestly, it is very risky and, as you say, it is a lot of work to be monitoring the accounts that offer guarantees. If you consider raising loan prices, we will understand.
Gotcha!
Its understandable!
So sending you Bro would be a low-effort loan right?
sounds like it might be.
Time is highly important and as an individual you are the determinant of how valuable people will value your time.
Great to see you breaking the new policy down and as a fan, i quite agree with you
Reasonable policy. I would do the same though no one asks me to lend anything !LOLZ
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Checking out this new loan policy soon.
Thanks for the info
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Hey man, what is the duration of the loan?
Lol I didn't know there is loaning system in hive.. It sounds good.I recently join neoxiancity, I feel I need a loan I must contact neoxian. Good initiative ; people need not to go bank.
Today, any loan can be issued online, it is very convenient and fast. In such cases, vamo in vietnam, they can see what conditions someone has and how quickly you need to return the borrowed money. It takes no more than an hour to complete, consider an application and receive money on a card.
The new policy is a great policy. Do you put into consideration the duration of the payment of the loan also?