Bitbond is slowly becoming a very popular platform for both users who are looking for a loan and users who want to invest their bitcoin on this peer-to-peer lending platform. Bitbond is completely run on the blockchain, leveraging its technology by connecting creditworthy borrowers with investors of all kinds, both individual and institutional investors.
Bitbond states:
"By innovating in the fields of payments and credit scoring, Bitbond makes financial inclusion a reality around the world. All payment transactions on Bitbond are conducted via the bitcoin blockchain. Therefore our service is available worldwide via the internet and is independent of banks."
BORROWERS-
If you would like to apply for a Small Business Loan the process is pretty simple.
You will first fill out the details like how much your looking to borrow and what you will be using it for.
These details are important for this is what the lenders will be reviewing when they decide if they want to contribute to your loan.
You will then be asked to connect all your social accounts like facebook, linkedin. Facebook etc..
Then you will need to connect your business accounts that show your making an income such as ebay, shopify, etsy and so on. You want to show that your making money with your business for the best chance of getting your loan. That doesnt mean you will automatically disqualify if your not making money yet but it will increase your odds. Your social accounts will also have to be active for a certain amount of time as well meaning if there a week old then don't bother applying.
The last part is to pass verification which proves your a real person with proper credentials. You will connect to a support member through live video and chat with them for about 2 minutes. During this time you will show them your I.D. so they can verify your identity. This step is really simple to complete. Once that is completed then you just wait for Bitbond to make its decision on whether to approve your loan.
Now in order for Bitbond to score borrowers who are not covered by conventional credit bureaus, they will use alternative data for credit scoring. This includes transactions of small business owners from established accounts like eBay, Amazon, Etsy, MercadoLibre, Shopify, PayPal, LinkedIn, bank accounts and other methods. The data then gets evaluated with our proprietary machine learning algorithm. I must say i am curious as to what algorithm they use.
LENDERS-
As for Lenders you have two different options when choosing the loans you want to invest in. You can either manually go through the different loans and choose what you believe is the best fit for your needs or you can use their AutoInvest Tool The Autoinvest feature lets lenders create a diversified portfolio of loans according to your preferences in an automated way.
The great benefit for investors who use Bitbond is that you can create a portfolio of loans that is diversified across many different countries. Plus each borrower is graded from a scale( A - D) with "A" being the most creditworthy with the highest probability of getting your investment back on time. A "D" grade is means the loan is more risky and has a higher chance of default.
AFFILIATES-
Bitbond offers a great affiliates program for those who are interested or maybe have a friend who might be interested in getting a loan. They offer 20% of the origination fee for borrowers and 30% from lenders.
Visitors will be considered your invite for 3 months and your visitors who register will pay out commisions to you for a total of 2 years.
CONCLUSION-
Bitbond is becoming a very useable platform for both lenders and borrowers. The platform increases in popularity daily and i wouldn't be surprised if one day it stands side by side with platforms like lending tree. Bitbond is the only platform offering this loan market integrated with blockchain and we recommend to visit their website if you haven't already.
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