Domain Financing Demystified?

[steveatvillas]

Hello all:

I've been looking at different ways to finance the purchase of a high end domain. But, when I go to the websites of the well known financiers, they are vague and don't quote terms and conditions.

Can anyone please give me typical financing terms for:

Interest rate range: ?

Term: Max years? months?

Down payment required: ?

I know that each transaction is unique, but I'm hoping that there are some standards?

Thanks in advance

[DNCredit.com]

Hi Steve,

I can't speak for our higher profile compatriots but on the deals we have done recently (on average):

Interest rate range: 20-25% per annum

Term: Around 6-12 months

Down payment required: We lend up to 50% of the liquidation value of the security (this is usually the most difficult part of the process)

Hope that provides some transparency for you Please drop me a PM if we can help in any way.

Cheers
Jon

Originally Posted by steveatvillas

Hello all:

I've been looking at different ways to finance the purchase of a high end domain. But, when I go to the websites of the well known financiers, they are vague and don't quote terms and conditions.

Can anyone please give me typical financing terms for:

Interest rate range: ?

Term: Max years? months?

Down payment required: ?

I know that each transaction is unique, but I'm hoping that there are some standards?

Thanks in advance

[steveatvillas]

Thanks Jon:

I will PM you with details, but this public post may be of use to other members, and maybe get you some business from other folks. Can't hurt.

For a really expensive name--say 500k plus--would you, or any other financier for that matter, consider a longer time frame? Like several years?

And how do you decide "liquidation value"...is this a fire sale value?

Thanks,

Steve

Hey Jon:

I've just been to your site, and yours is more informative than most. Kudos.

Howz OZ? Ur up late....

Steve

[Rockefeller]

contact rick at ricklatona dot com

[DNCredit.com]

I think most domain financiers would consider it. It comes down to:
- the general interest rate environment over the proposed loan term
- the reputation and credit worthiness of the borrower
- the likely value of the domains (held as security) at the end of the loan term (interestingly, some of our deals assist domainers looking to free-up liquidity using their holdings - not just domain acquisitions)

For DNCredit.com, we don't usually usually pitch for the high-end domains that you would read about in the NYT, nor do we take the pawnbroking/short-term finance approach. We usually work in the $10k to $100k area and we work hard to be more approachable and we take confidentiality and avoiding conflict of interest very seriously.

We have partnered with Chris Beach, who is a very active domainer (and an ex-DNForum moderator) so we make sure we build a domainer's perspective into our offerings.

It is very late indeed here in Oz - my youngest has just gone to bed and I'm about to join a few friends to watch the FA Cup final (Cardiff vs Portsmouth) before nursing a likely very sore head tomorrow

Nice chatting to you, Steve.

[intangible]

Here is a good explanation of the process

http://ericoz.com/2008/04/17/domain-financing/

[Giode]

Rob Monster, from Monster Ventures, is soon rolling out a new domain financing service called Domain Equity. Anyone familiar with Rob Monster knows he is all business, and a person to take seriously.

I was the first to use this service, and can tell you that it is much quicker than Domain Capital at getting financing worked out. I believe it will soon be the best option for domain financing out there.