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- Thread starter Jorgensen
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JuniorLion
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High returns with 0% risk? You should invest.
go and read the T&C to see whether the lender has the discretion whether or not to declare default.
its very easy to never have default. just don't declare default, but don't pay the investors either. update status as "pending debt restructuring", maybe have 1 year of dicussions, then announce your 3 year high interest loan get restructured into a 10 year interest free loan. but its ok, no default!
that why I think this sort of business model is really win-win for lender and borrower. The lender collects all his fees upfront so non repayment doesn't bother him, and the borrower knows the lender got no incentive to waste legal fees to sue him for the debt since he already collected all his fees already.
its very easy to never have default. just don't declare default, but don't pay the investors either. update status as "pending debt restructuring", maybe have 1 year of dicussions, then announce your 3 year high interest loan get restructured into a 10 year interest free loan. but its ok, no default!
that why I think this sort of business model is really win-win for lender and borrower. The lender collects all his fees upfront so non repayment doesn't bother him, and the borrower knows the lender got no incentive to waste legal fees to sue him for the debt since he already collected all his fees already.
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