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)
