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Peer-to-Peer Lending with Bitbond


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Specialising in SME lending since 2013, Bitbond has funded over 1300 small business loans, making it one of the best online lending sites for SMEs in the world. For those seeking double digit returns, Bitbond offers fixed income investments, with many different risk profiles to chose from. By investing in direct debt on Bitbond, lenders can support causes they believe in, regardless of location or currency. Marketplace lending is only growing stronger, and so is Bitbond.

Published in: Economy & Finance
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Peer-to-Peer Lending with Bitbond

  1. 1. Peer-to-Peer Lending with Bitbond The #unbank
  2. 2. Source: KPCB Internet trends 2015 The digital economy continues to grow
  3. 3. E-commerce Real estate Transportation Knowledge Freelance work Food E-marketplaces today cover many industries ...and many more
  4. 4. To grow, entrepreneurs need financing for: renovation, cars, computers, equipment To grow, entrepreneurs need financing for: inventory, production, storage facilities Marketplace entrepreneurs need financing
  5. 5. Global funding gap of SMEs according to the World Bank Reasons → lack of banks’ scoring capabilities, retail loan volumes often relatively expensive to serve for banks, lack of presence of banks in some regions $ 2 trillion
  6. 6. Small businesses sell and operate digitally but banks don’t keep up with the change
  7. 7. Bitbond is the first global marketplace lender for small business loans We connect small business owners who need a loan with fixed-income investors We have a proprietary scoring mechanism and use bitcoin for payments to enable efficient cross-border lending Bitbond connects borrowers and lenders globally
  8. 8. SME loans are attractive fixed income assets Unsecured small business loans Loan amount: up to $10,000 Term: 6 weeks to 5 years Repaid in monthly installments Interest rates: 10% to 35% p.a. Scoring via read access to borrowers’ business accounts (eBay, Amazon, MercadoLibre, PayPal etc.) Denominated in USD or EUR, paid out and repaid via bitcoin
  9. 9. Retail and institutional lenders fund the loans Expected gross return in a diversified portfolio13% p.a. Asset managers Microfinance funds Banks Retail lenders Institutional lenders Individuals
  10. 10. Scoring is done based on business account data PSP Accounting reads applicant’s data through API connection Example Account type Marketplace continuous data evaluation improvements via machine learning in cooperation with Business owner conducts identification (via partner Identity TM) and fraud checks Credit score and debt capacity Based on ● Identification documents ● Revenue and feedback on marketplace accounts ● Transactions in payment accounts ● Business standing based on internal accounting ● (Absence of) fraud indicators ● Data which banks mostly don’t consider grants account access
  11. 11. Paymentremindertypes reminder letter mailed to the borrower’s postal address every 8 days emails SMS automated calls manual calls letters automated reminder SMS sent always 12 hours after an automated email manual reminder phone calls depending on status of communication with borrower automated email every 4 days plus manual correspondence by admins automated reminder phone calls via text-to- speech API every 4 days Overdue loans get collected professionally Loans that remain overdue for 90+ days are passed to an international debt collection agency
  12. 12. FX risk is avoided by USD and EUR based loans Value is kept constant in US dollars Payment in bitcoin fluctuates with the BTC price Loans are paid out in the digital currency bitcoin Borrowers convert BTC to local currency to make a purchase or they pay with bitcoins directly Repayment value is fixed in US Dollar or Euro to avoid bitcoin FX risk Borrower buys BTC at the due date to make a payment Bitbond helps with conversion by integrating 3rd party exchanges
  13. 13. There are 3 good reasons to use 1. 2. 3. Global cross-border lending Bitcoin transactions are completed within seconds globally and are nearly free Using wire transfers or other payment networks on a global scale would be prohibitively expensive Low fees Other marketplace lenders need an expensive banking partner which makes them charge high fees Bitbond runs on open-source bitcoin infrastructure, is bank-independent and therefore cost effective Financial inclusion Global internet penetration via smartphones is currently surpassing bank account penetration Users from around the world reach Bitbond via the internet and don’t need a bank account to get a loan
  14. 14. Countries with funded borrowers, 38 are emerging markets We originated over 1,200 loans and grow fast 1,200+ $ 530 k Originated loans Total originated loan volume to date (average loan today ~$1,200) 64
  15. 15. Cross-border lending Countries active Total USD raised Loan types p2p installment loans p2p installment loans credit line credit line credit line credit line and term loans DE, UK, US 1 m 600 m 31 m 130 m IPOed 273 m global UK, US DE, PL, ES, UK UK US —✔ — — — — Bitbond operates globally while competitors don’t
  16. 16. Svetlana, e-commerce entrepreneur from the UK - WellDone Store “I manufacture and sell cosmetics – hand made. It is quite popular and I am happy how it goes. I would like to start 9 new positions but I need to buy some ingredients and what is more important, some equipment for that.” Claudia, fitness products entrepreneur from Colombia - Fitness Plus "Bitbond is helping people who want to grow their business. Besides, it is evolving with life, everything is done through the internet nowadays. I admire and love the fact that it is also breaking the barriers between countries. I love being able to check the status of my loan from my cell phone on my way to work instead of waiting on the phone for hours or going from office to office as we have to do when applying for a loan with a bank." Antonio, e-learning entrepreneur from Brazil - Intelligente “I have applied for a loan through Bitbond because the interest rates are attractive and also for the possibility of long term loans, such as 12 months or even longer.” Francisco, artisanal soap maker from Venezuela - Savon 2i “The loan will be used to buy machinery and raw materials for my business, such as induction burners, steel pots, oats, exfoliant, sulfur, lard, some plastic racks and more molds.” We create impact for entrepreneurs globally
  17. 17. Bitbond reaches and serves the small businesses that banks don’t
  18. 18. SIGN UP TODAY