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Peer-to-Peer Lending with Bitbond
The #unbank
Source: KPCB Internet trends 2015
The digital economy continues to grow
E-commerce
Real estate
Transportation
Knowledge
Freelance work
Food
E-marketplaces today cover many industries
...and many more
To grow, entrepreneurs need financing for:renovation, cars, computers, equipment
To grow, entrepreneurs need financing
for:inventory,
production, storage
facilities
Marketplace entrepreneurs need financing
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
Small businesses sell and operate digitally but banks don’t keep up with the change
Bitbond is the first global marketplacelender for small business loans
We connect small business owners whoneed 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
SME loans are attractive fixed income assets
Unsecured small business loansLoan 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
Retail and institutional lenders fund the loans
Expected gross return in a diversified portfolio
13% p.a.
Asset managers
Microfinance funds Banks
Retail lenders
Institutional lenders
Individuals
Scoring is done based on business account data
PSP Accounting
reads applicant’s data through API connection
Example
Account typeMarketplace
continuous data evaluation improvements via machine learning in cooperation with
Business owner
conducts identification (via partner Identity TM) and
fraud checksCredit score and debt capacityBased 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
Paym
ent
rem
inde
r ty
pes
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
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
There are 3 good reasons to use1.2.3.
Global cross-border lendingBitcoin transactions are completed within seconds globally and are nearly freeUsing wire transfers or other payment networks on a global scale would be prohibitively expensive
Low feesOther 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 inclusionGlobal 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
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
Cross-border lending
Countries active
Total USD raised
Loan typesp2p
installment loans
p2p installment loans
credit line credit line credit linecredit lineand term
loans
DE, UK, US
1 m 600 m 31 m 130 m IPOed 273 m
global UK, USDE, PL, ES,
UK UK US
—✔ — — — —
Bitbond operates globally while competitors don’t
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
Bitbond reaches and serves the small businesses that banks don’t
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