Intelend.com is a relatively new company in the domain space and considers itself a digital pawn shop that makes loans just holding domain names as collateral again the loan.
Loan are made to either give cash to domain owner or to help domainers with financing in the acquisition of new domain names.
I had a chance to speak with Matt Collins last week a principal in InteLend.com about its services.
IntelLend.com is “a digital pawn shop, you bring a domain to us and we look at the domain name and the value of the domain. There is no credit check, no income stream required. We lend money based on just the value of the domain name, using the domain as collateral”.
“We analysis the domain name, come up with our own valuation, and we will loan out based on 30-50% of our value of the domain name.
“We want the customer to have skin in the game not to default in the loan”.
We asked Matt how InteLend is this different than say DomainCapital?
DomainCapital.com is a completely different product.
‘With InteLend.com all the customer pays is interest”
“We have no fixed term, no call date that the Principal is due, no early payment or termination penalties”.
“DomainCapital.com requires a monthly payment of both princpail and interest, with a locked in term, and typically has early termination penalties”.
“InteLend is best for short term capital needs.”
If the concept sounds similar to the old Digipawn, its no accident.
Matt who is a an attorney was partners with Digipawn and sold his interest to Rick Latona.
According to Mr. Collins, Intelend.com has good financial backing us 4 months into operation has loaned six figures out.
Interest rates run between 3%-10% per month based on the quality of the domain and the percentage to value they are lending on the domain.
Loans made on the lower end of equity to value say 30% may carry a 3% monthly charge while lower quality domains and those made at 50% equity to loan value can be as high as 10% a mont.
InteLend has a goal of getting “$20 Million in loans the street.”
Matt acknowledges that they will have defaults and plans on placing the lower end domains into industry auctions while high valued domains will be sold through various high end domain name brokers.
InteLend.com has also launched an affiliate program for brokers and bloggers which pay a 3% commission of total amount financed to the affiliate so basically one month of interest on a 3% loan.…
