Re: Business Application Update
Thank you for your interest. The Venn diagram is slightly edited so as to only show the profits (and yje customer asset base). Around here the "personal loan" market in this sector charges 35% monthly (not compounded = 420% annually). The derivatives market targets that stratum of society which are deemed too great a risk even for these rates of interest, and yet their needs are often even more pressing. The assumption that they will be arrested if they are seen near any financial services centres of this type during the daylight hours opens up an opportunity for a 3rd party to act as their agent, Of course the 3rd party would have to pay the 420% - but is incurring the full risk herself; it would be mean to charge a premium, however (as other operators less well intentioned to the mortgagor certainly would) and so she only charges the 35% (monthly) which in this business model nets 840%pa (if the items used for security are not lodged 2nd party). Any monies loaned will be spent unwisely on goods and services provided by sharks of the 1st water who charge outrageous prices. That opens up additional opportunities to protect these vulnerable souls from exploitation by arranging the supply of these commoditied directly. A sort of "one stop shop" - but these fall outside the remit of the planning department's current inquiry, and are not shown on the Venn diagram.
ML
Originally posted by Benedict A. Davis
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ML
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