PWCC expands its lending activities

[Kidnapped18]

Originally Posted by raulus

But if you're buying new cards, then you don't have them in the vault yet. So it's unclear to me how PWCC would lend you cash to buy new cards that you haven't yet put into their vault. I suppose if the seller already had them in the vault, and PWCC was just moving them over to your account, then maybe PWCC would lend you the money to buy that card, and you could just put 40% down and borrow the rest.

PWCC wants to keep everything IN HOUSE. The cards have to be in the Vault in order to get a loan/cash advance on the cards. If you buy $10,000 worth of cards from REA, PWCC wants you to ship the cards to the Vault and then you can get the loan/cash advance on the $10,000 once the cards are there. PWCC wants you to use the funds to spend in their weekly/monthly auctions. They want to sell the same card/s over and over again to generate revenue. They get the 20% every time a card sells on their platform and they don't have to ship it since its kept in the Vault. Win-win for PWCC.

[raulus]

Originally Posted by Kidnapped18

PWCC wants to keep everything IN HOUSE. The cards have to be in the Vault in order to get a loan/cash advance on the cards. If you buy $10,000 worth of cards from REA, PWCC wants you to ship the cards to the Vault and then you can get the loan/cash advance on the $10,000 once the cards are there. PWCC wants you to use the funds to spend in their weekly/monthly auctions. They want to sell the same card/s over and over again to generate revenue. They get the 20% every time a card sells on their platform and they don't have to ship it since its kept in the Vault. Win-win for PWCC.

Absolutely! Just like realtors want us to all trade houses every 6 months.

[55koufax]

What makes anyone think that Brent and Betsy can manage $175XL well in their lending biz?

They easily have the single worst website of any AH in the world! And what is it? 12 to 18 months old??? Pathetic

[jimjim]

Stupid question…. How do these companies set up these vaults? Has anyone seen one? Is it a real bank style vault in a secure location? Or is the use of the word vault just a descriptive term?

[Jay Wolt]

Originally Posted by jimjim

Stupid question…. How do these companies set up these vaults? Has anyone seen one? Is it a real bank style vault in a secure location? Or is the use of the word vault just a descriptive term?

This got me curious too!
Went on PWCC's site & here is their "Vault" Link

https://www.pwccmarketplace.com/vault

[carlsonjok]

Originally Posted by Jay Wolt

This got me curious too!
Went on PWCC's site & here is their "Vault" Link

https://www.pwccmarketplace.com/vault

Assuming for a moment that this isn't a stock photo, I find it interesting that their vault has a floor to ceiling window.

EDIT:Never mind, that appears to be a reflection.

[rjackson44]

I have a vault at home with this bodyguard

[parkplace33]

Could you imagine a “bank run” on pwcc vault cards? Yikes.

[Peter_Spaeth]

Originally Posted by parkplace33

Could you imagine a “bank run” on pwcc vault cards? Yikes.

If enough people get concerned about their viability that will almost certainly happen.

[raulus]

Originally Posted by Peter_Spaeth

If enough people get concerned about their viability that will almost certainly happen.

Does anyone feel like a run on the vault would have the same impact as a run on a bank?

Since the business model is so different, it seems like the impact would be different. I mean, it would definitely reduce their business with people selling from the vault. And it would reduce their ability to basically move stuff from one owner to another within the vault while taking a commission without really doing much. But it’s not like they would run out of cards to give back to their depositors because they’ve loaned them all out.

Plus I suspect that for anyone with a loan against their cards, to get their cards back, they’d need to repay the loan first. So if PWCC is hurting for cash, getting those loans back might actually help their short term cash position.

I am intrigued by the inference in the video clip that loans would be made up to 100% of the sales price. Everything in their marketing materials they’ve sent to me suggests that 40% was the limit. But maybe I’m not eligible for their best loan terms.

[Peter_Spaeth]

Originally Posted by raulus

Does anyone feel like a run on the vault would have the same impact as a run on a bank?

Since the business model is so different, it seems like the impact would be different. I mean, it would definitely reduce their business with people selling from the vault. And it would reduce their ability to basically move stuff from one owner to another within the vault while taking a commission without really doing much. But it’s not like they would run out of cards to give back to their depositors because they’ve loaned them all out.

Plus I suspect that for anyone with a loan against their cards, to get their cards back, they’d need to repay the loan first. So if PWCC is hurting for cash, getting those loans back might actually help their short term cash position.

I am intrigued by the inference in the video clip that loans would be made up to 100% of the sales price. Everything in their marketing materials they’ve sent to me suggests that 40% was the limit. But maybe I’m not eligible for their best loan terms.

Lending 100 percent of the value of the collateral or anything close would be incredibly stupid, I don't believe it.

[Republicaninmass]

Issue is pwcc allowed shilling to pump these prices up so high even 50% of today's ltv will leave THEM holding the bag.

Its almost self fufilling they lose everything and receive pennies on the dollar after the forced sales on bad loans..

[BobbyStrawberry]

Originally Posted by rjackson44

I have a vault at home with this bodyguard

I'd trust her a lot more than PWCC