Business opportunity.
Discussion
Paydayloans, wonga etc....
We're talking scummy companies feeding on the elderly, chavs and people unfortunate to be out of work (or people fortunate to work from home). After all, their adverts are generally screened during daytime TV....
Wonga have a ridiculous interest rate, something like 4250%, Paydayloans undercut this significantly.
I propose a new lender...a kind lender...the lender that loves to say yes, a lender that will offer vastly improved rates over the aforementioned companies.
So....instant cash, up to 1k, over a max period of 6 months.....999% APR....
Instant success :-D
We're talking scummy companies feeding on the elderly, chavs and people unfortunate to be out of work (or people fortunate to work from home). After all, their adverts are generally screened during daytime TV....
Wonga have a ridiculous interest rate, something like 4250%, Paydayloans undercut this significantly.
I propose a new lender...a kind lender...the lender that loves to say yes, a lender that will offer vastly improved rates over the aforementioned companies.
So....instant cash, up to 1k, over a max period of 6 months.....999% APR....
Instant success :-D
scottyr said:
Paydayloans, wonga etc....
We're talking scummy companies feeding on the elderly, chavs and people unfortunate to be out of work (or people fortunate to work from home). After all, their adverts are generally screened during daytime TV....
Wonga have a ridiculous interest rate, something like 4250%, Paydayloans undercut this significantly.
I propose a new lender...a kind lender...the lender that loves to say yes, a lender that will offer vastly improved rates over the aforementioned companies.
So....instant cash, up to 1k, over a max period of 6 months.....999% APR....
Instant success :-D
I guess they have such high interest rates as they have to write off so many bad debts. Lending to people who can't afford to borrow comes with big risks and therefore big interest rates.We're talking scummy companies feeding on the elderly, chavs and people unfortunate to be out of work (or people fortunate to work from home). After all, their adverts are generally screened during daytime TV....
Wonga have a ridiculous interest rate, something like 4250%, Paydayloans undercut this significantly.
I propose a new lender...a kind lender...the lender that loves to say yes, a lender that will offer vastly improved rates over the aforementioned companies.
So....instant cash, up to 1k, over a max period of 6 months.....999% APR....
Instant success :-D
I don't agree with it, but thats just how it is - if 999% was feasible to lend to the type of person these are aimed at, I'm sure someone would have done it by now to undercut everyone else.
Why don't you do it and let us know how is goes
Not a case of writing off bad debts...you don't leave yourself that vulnerable...this aint the mid 2000s ya know 
Only lend to people with some kinda collateral, judging by the target audience I would be happy if they secured anything of value against the loan. From Mr Spliffy "Eclipse" gear and Doritos 6 packs to blenders and cutlery sets :-).
Got it all sussed. Business plan written already ;-)
Only lend to people with some kinda collateral, judging by the target audience I would be happy if they secured anything of value against the loan. From Mr Spliffy "Eclipse" gear and Doritos 6 packs to blenders and cutlery sets :-).
Got it all sussed. Business plan written already ;-)
JPJPJP said:
Zopa
"With the new tax year just around the corner, the annual ISA season broke out in earnest and banks are vowing for your attention with rates of up to 3.3% for an instant access ISA account. So, how does that compare to Zopa?
Let's assume you want to lend your money at a fast pace, lending to our lowest risk A*36 market only. Offering a rate of 6.6% will make sure your funds are matched to our borrowers in no time, and you'll end up with a 4.0% return, taking into account the 1% fee, basic rate tax and expected bad debt! Add to that the well-known limitations on a cash ISA account (such as no transfers in, withdrawal penalties and the maximum yearly investment amount), and we think we've got a great offer for the nation's savers – not just in March, but all year round!"
4%? That sucks.
Edited by NoelWatson on Friday 1st April 18:58
scottyr said:
Well, I believe they are one step up the ladder from loan sharks. Which kinda makes them pretty low.
Both target the weak, the vulnerable, the hardup. Only difference is, Wonga et-al will leave you with no food, loan shark leaves you with no legs.
They give them a means to borrow money that banks and building societies don't. Surely that makes the banks and building societies the scum? It's the borrowers fault if they borrow an amount they can't afford to pay off. I just consider it a tax on the thick. Like the national lottery, but one big hit rather than a lifetime of disappointment.Both target the weak, the vulnerable, the hardup. Only difference is, Wonga et-al will leave you with no food, loan shark leaves you with no legs.
scottyr said:
MMM, no, that makes the banks and business societies prudent. Well, if they operated as they should it would.
The reason we had the whole banking crisis was down to said Banks/Building societies throwing money around like confetti to people who couldn't afford to pay it back.
And the government had no part in it?The reason we had the whole banking crisis was down to said Banks/Building societies throwing money around like confetti to people who couldn't afford to pay it back.
GreigM said:
scottyr said:
MMM, no, that makes the banks and business societies prudent. Well, if they operated as they should it would.
The reason we had the whole banking crisis was down to said Banks/Building societies throwing money around like confetti to people who couldn't afford to pay it back.
And the government had no part in it?The reason we had the whole banking crisis was down to said Banks/Building societies throwing money around like confetti to people who couldn't afford to pay it back.
Nor central bankers?
Nor rating agencies?
scottyr said:
Paydayloans, wonga etc....
We're talking scummy companies feeding on the elderly,
I used to know one such firm quite well. They were some of the nicest people I have ever done business with.We're talking scummy companies feeding on the elderly,
Their customers liked them and many borrowed from them time and time again.
Their business seemed quite an art form to me, not a ruthless numbers game.
scottyr said:
The reason we had the whole banking crisis was down to said Banks/Building societies throwing money around like confetti to people who couldn't afford to pay it back.
I think you'll find that the banks/building societies did what they did because they were pressured by consumers/governments etc to keep loaning more and more money to people less and less able to afford it.It's very hard to justify a comment like the one above if you have a proper perspective on the matter...
Cheers
The Moose
The Moose said:
I think you'll find that the banks/building societies did what they did because they were pressured by consumers/governments etc to keep loaning more and more money to people less and less able to afford it.
It's very hard to justify a comment like the one above if you have a proper perspective on the matter...
Cheers
The Moose
So explain the situation over the past 3/4 years, where they've been criticised by the government for not lending out enough?!It's very hard to justify a comment like the one above if you have a proper perspective on the matter...
Cheers
The Moose
Also what didn't help is the legislation regarding writing off debts that was thrust into everyones face/ears via the media.
Not saying there weren't other factors involved, but you can't suggest that my statement isn't true.
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