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Bitbond is a global peer-to-peer bitcoin lending platform for small businesses. Most borrowers are eBay sellers and other online small businesses. Bitbond is run by Bitbond GmbH, a German company that facilitates loans throughout the world. As of March 2016, Bitbond had 23,000 users and had funded over 1,100 loans. The marketplace connects investors and borrowers and facilitates loans of up to $10,000. Borrowers can qualify for interest rates as low as 7.7% and origination fees range from 1% to 3%.
How Does Bitbond Work?
Bitbond makes investors diversify their portfolio by investing in bitcoin loans throughout the world. Borrowers receive low interest loans with favorable terms and get the satisfaction of obtaining a loan without the need of a bank.
The first step in Bitbond’s lending process is to perform a credit rating of all borrowers. Bitbond’s rating goes from A (the highest) to F. Once rated, borrowers list a project on the marketplace. Investors then choose which listings they are interested in and lend as little as BTC 0.01 ($4 as of March 2016) per loan. A listing has a maximum of 14 days to receive funding, but the auction will end as soon as the amount requested is reached. Loans are funded as long as investors fund 60% or more of the required amount.
Borrowers can have a maximum of one loan at a time.
What Are Bitbond’s Interest Rates?
Interest rates vary depending on the creditworthiness of each borrower. Bitbond does not publish a range of APR rates, but interest rates can be as low as 7.7% (as of March 2016) and as high as 25%.
Bitbond charges borrowers a 1% to 3% origination fee. The cost varies depending on the length of the term. A six weeks loan has a 1% origination fee, but a 60-month loan has a 3% origination fee. There are no other lender fees or prepayment fees.
How Much Money Can I Borrow From Bitbond?
Borrowers can apply for loan amounts of up to $10,000.
What Is Bitbond’s Application Process Like?
Borrowers must first open an account with Bitbond. Just provide your full name and email address. Bitbond will send you an email with a link. Complete the short application form. The platform will check your credit profile and give you a rating of A to F, depending on your credit history, type of business, revenue, customer rating, and so on.
How Is Bitbond Better Than Other Lenders?
- Bitbond allows investors to diversify their portfolio globally
- It has competitive rates and low origination fees
- The marketplace will process loan listings where investors have funded 60% of the loan amount
- Investors can automatically invest their funds with no fees
- Application process is fast and easy to complete
Berlin, Germany, USA
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