Are you aware Capital One is a registered trademark and that pre-existing Capital One also happens to be in financial services? Will investor funds be used to pay litigation costs when you are sued?
Thank you DeathAndTaxes and everyone who has brought this up at this early stage, which saves me lots of legal trouble in the future. I won't risk into the being sued situation. I will change the name.
Why are your "clients" borrowing at 3000%+ APR? Are they such bad credit risks that they can't borrow anywhere else for cheaper?
They are just irrational and in a hurry when they decided to borrow from us. We are 100% sure where the money is going to use. We know whom we will go to if the borrower himself cannot pay back the money(their parents). In my country, the credit card cannot withdraw cash more than 10% of their total credit limits. and where they want to use money only accept cash. So even someone with a good credit record in the bank will borrow money from us in such a special situation.
It is not a 3000%+ APR.(I guess this is a typo, you mean 300%+, right?) It last only for 1 day most of time for 2% per day. it is not a (1+2%)^365 formula. it is not compounded. f you can find one please tell me. the IRR/discount cash flow is most mathematically perfect and realistically foolish theory in the financial industry.
There is no big company provide "payday loan" in my country. we are not a company. i guess I will not use the term "corporation" any more. I'm not misleading anyone. In my country people don't treat "company/corporation" term as seriously as you guys.
What is the historical collection rate on defaulted loans?
About 3%-5% will become a defaulted loan, and about 10% of the defaulted loan will lose part of the principal at last.