i'm wondering if this could work as more of an asset buy back program. NXTBank is issued all the shares of the new venture in exchange for the loan. The borrower can then buy back the shares in their company from NXTBank with a predetermined amount of interest??



the incentive to pay the loan back comes from the borrower wanting ownership of their company free and clear, to own or to issue assets on their own for their real market value. if the borrower defaults, NXTBank would at least be left with ownership of the new company



spaw



I like this! Very creative idea and I am glad to see others push the boundaries. We are in a totally new sphere so we can design things that were not possible before.This asset sellback is perfect for a startup business oriented loan. Certainly any successful business would be worth far more than any principal+interest that would be required to repurchase the assets.However, I do not want people to think that they can just shoot for the moon and if it doesnt work out, they just walk away. They are still honor bound to pay back the loan and this is simply a mechanism to enforce it.borrowers selfinterest guarantees loan repayment. That is the brilliance of this ideaborrowers honor will hopefully serve as the backstop in case the business doesnt work outNow as to trust level. Lets give an example. Lets say CfB needed a loan for whatever reason. I would imagine that a lot of people would just lend him money without interest, but lets say a loan arrangement is made at an interest rate. Then I believe repayment is much more assured than if the loan was made to someone with all the right paperworks.I tend to believe my own experiences over some numbers in a credit report. How do we know we can even trust the credit report?So, a person without any history will have a hard time getting a loan. That makes sense to me. What if emule came here asking for a loan? What if he had a perfect credit record? See, it matters more how a person has behaved in the past. The person matters most of all, the paperworks are just papers.As a person gets a history, people will see what type of person they are, how they interact with others and usually some sense of their skill level. As long as a person is not asking for a loan amount that is far in excess of their history/skill level, then they should get the loan.How will we know what amount is right? There is no formula, all needs to be done on a case by case basis. We need to make this process personal. The current real world banking process is the least personal of all the service businesses. It is only about what is in the computer, regardless of, well regardless of anything else. You get more personalized service at a McDonalds than the bank where your entire life situation might depend onWill some people take advantage of NXTbank, most likely. It is sad, but some people just dont have any honor. However, I dont think it will be so high a rate.Anyway, just wanted to drop in and say I like the asset sellback idea. It basically uses the small business asset as collateral. Very direct. very effective.James