Borrowing money from online companies.

[Dirk_brijs]

have been looking into add some extra cash flow into my company with a smaller loan of about 500K

Banks in Thailand seem out of the picture as they all want to see or a proof of steady income from the director or from the company itself now as we are a new company this can not be shown so anyway...

Have been doing some research online and found some companies online who offer loans secured by property. As I do own a house I could loan the money from them with my house as collateral.

Have been asking and they could offer loans for 5 years at a 15% annual interest payable every 3rd month.

Now was wondering what the dangers (if any) would be of going in with companies like that? Are they trust worthy and what issues could they actually cause besides the expected ones if I don't pay back regular right.....

[Dirk_brijs]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

[lopburi3]

Are they trust worthy and what issues could they actually cause besides the expected ones if I don't pay back regular right..

From your second post perhaps an early demise might be one possible issue?

[Pib]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan "broker"...hooks up someone who wants to borrow money with someone who is willing to loan it....the broker takes his loan commission upfront and then backs out of the picture after all the loan paperwork is signed. Very common in the real estate business.

Then the person who borrowed the money would be dealing solely with whoever loaned him the money. Maybe a reputable financial company, maybe Somchai the Loan Shark, maybe Vladimir the Loan Shark, etc.

[Dirk_brijs]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan "broker"...hooks up someone who wants to borrow money with someone who is willing to loan it....the broker takes his loan commission upfront and then backs out of the picture after all the loan paperwork is signed. Very common in the real estate business.

Then the person who borrowed the money would be dealing solely with whoever loaned him the money. Maybe a reputable financial company, maybe Somchai the Loan Shark, maybe Vladimir the Loan Shark, etc.

Pib yeah most likely a set up like that.

But then again what would be difference in loaning money from a bank or from a loan shark as long as you make your set pay dates as per requirements? (besides the higher interest rates obviously)

Is there any more risk involved loaning money from one of those companies than from banks?

[Satcommlee]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan shark to me!

[Pib]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan "broker"...hooks up someone who wants to borrow money with someone who is willing to loan it....the broker takes his loan commission upfront and then backs out of the picture after all the loan paperwork is signed. Very common in the real estate business.

Then the person who borrowed the money would be dealing solely with whoever loaned him the money. Maybe a reputable financial company, maybe Somchai the Loan Shark, maybe Vladimir the Loan Shark, etc.

Pib yeah most likely a set up like that.

But then again what would be difference in loaning money from a bank or from a loan shark as long as you make your set pay dates as per requirements? (besides the higher interest rates obviously)

Is there any more risk involved loaning money from one of those companies than from banks?

Guess it would all boil down to the loan contract you signed (or didn't sign), whether the loan company is regulated or not, whether they follow all loan laws, how customer oriented/understanding they are in trying to collect overdue payments, etc.

Seems about all we hear/read about is whether a loan come from a bank or a loan shark....we know banks follow the law....we know loan sharks skirt the law....but we don't hear about those financial companies operating somewhere between a bank and a loan shark.

[Robert24]

Just an idea: instead of borrowing money from an unknown source at 15% p.a., have you considered alternative ways to raise cash for your business? I.e. An investor who can take a stake in your company through the investment or get a mortgage on a different property with very low interest rates, ie Singapore or Europe etc.

[ezzra]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Those kind of ' loan arrangement companies ' will also arrange for your bones to be broken

if you default or be late on repayments... stay far away as you can from these vultures..

Best to advertise for an investor/partner rather than borrow money, unless it's from a reputable

landing institutions...

[xen]

I sometimes get offers from companies like this in my spam folder along with the lottery winnings and nice invitations from willing Russian lasses. Send me your details and i will pass the offers onto you.

[MJKT2014]

Is there any more risk involved loaning money from one of those companies than from banks?

Assuming you weren't born yesterday, the question has already been answered in #3.

[dotpoom]

When you want money from a bank or whatever for a period of time.....you borrow it from them. If you want to give money to a person for a period of time ....you lend it to them. What's with this "lending" it from a online company?

Only heard Thai people say that who didn't understand English very well.

Edited April 13, 2015 by dotpoom

[maidee]

russian company in pattaya loaning some money

are you sure it is not 15% per week or per month ?

[gk10002000]

500k baht is about 15,000 USD. That is not outside the reach of one or two credit cards that let you take cash advances.

[worgeordie]

Dirk,I had exactly the same company as you have,in the UK,started

from the back bedroom,built it up with very hard work,from retail,then

wholesale,and then Import/export,until I sold the company which then

had a turnover of 5M sterling,with very good profits.

Never had a loan of anybody,as no one would lend,at the beginning,

and as time went on I did expand the company every year,through

putting all the profits back in,so start small,walk before trying to run,

build the business yourself,you will get much more satisfaction and

pride in doing so.borrowing money off Russians in Pattaya,the alarm

bells are ringing! don't do it.good luck

regards Worgeordie

[CWMcMurray]

If talking 15%... Can't you just take cash advance on credit card?

[DrTuner]

How much are your kneecaps worth?

[akentryan]

A big concern is what is the interest rate for late payments or while in default. Maybe 15% a day? Once the value of your house is exceeded by principal and interest the physical threats begin. They are deadly serious too.

[Rumblecat]

When you want money from a bank or whatever for a period of time.....you borrow it from them. If you want to give money to a person for a period of time ....you lend it to them. What's with this "lending" it from a online company?

Only heard Thai people say that who didn't understand English very well.

The online company is lending the money to the customer.

But nobody's said "lending it" except you.

[F4UCorsair]

15% !!!! Are you nuts?

[Monkeyrobot]

Two words > Danger Danger

[micmichd]

Sounds like scam.

Were you already asked for a small advantage fee?

[how241]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan shark to me!

+1...Sounds dangerous to your health if you don't pay.

[lopburi3]

Google provides visuals.

[inkorat]

PM me, I may be able to help you out or invest if it is a real opportinity. Always Looking.

[kbelyeu]

If you own your own home why not borrow against the home from a local bank?

Kurt

[Travelman868]

anyone ever heard of this company?

"arrange loans"

they seem a Russian company based in Pattaya

Sounds like a loan "broker"...hooks up someone who wants to borrow money with someone who is willing to loan it....the broker takes his loan commission upfront and then backs out of the picture after all the loan paperwork is signed. Very common in the real estate business.

Then the person who borrowed the money would be dealing solely with whoever loaned him the money. Maybe a reputable financial company, maybe Somchai the Loan Shark, maybe Vladimir the Loan Shark, etc.

15% seems low interest for loan shark unless it is 15% per month. I presume the loan is for 500,000 baht so around £11000.

If you are Farang who owns the land and the house? What is the business and who are the Thai's involved in that?

How much money are the Thai's going to borrow for your joint business ?? If nothing then I think you have answers to questions.

It's all very well Farangs going into business with Thai people however when the house goes up for security and you do not own the land thats when problems start.

If you cannot afford to lose £11000 then don't borrow the money or you WILL lose the house.

[Dirk_brijs]

If you own your own home why not borrow against the home from a local bank?

Kurt

Local banks in Thailand do not borrow money against houses rather only borrow money against a proof of income how big or how little it is. We have gone to every bank known and all want to see some sort of pay slip and are not interested in the value of the house at all.

[Dirk_brijs]

Just an idea: instead of borrowing money from an unknown source at 15% p.a., have you considered alternative ways to raise cash for your business? I.e. An investor who can take a stake in your company through the investment or get a mortgage on a different property with very low interest rates, ie Singapore or Europe e

Have looked for investors yes but couldn't find anyone. Also am also only looking for a short term solution and not really looking in hanging to a partner for the rest of eternity so any investor would be a short term investment and maybe that's why not a lot of them are interested?

If anyone knows someone who is interested in a short term investment opportunity one can always send me details and we can talk for sure.

[khunPer]

15% pa is the maximum legal interest for ”private loans” in Thailand – they cannot charge more interest if they want property (land deed) as security and use the court system.

There might be other fees, not interest, OP should also check.

OP asks: »Now was wondering what the dangers (if any) would be of going in with companies like that?«

Personally I would be very skeptical with any loan not given by a bank/mortgage institution or a reputable credit company...