Tuesday Team Talks №9
Five Benefits of Marketplace Lending
Dear Community,
We are working hard on developing FintruX Network to be the provider of innovative financial solutions for SMB’s globally. Running a business is tough, and we are positioning our ecosystem to be at the forefront of every entrepreneur’s mind as he thinks — “What tools do I need to sustain and grow my company?”
To that end, we believe the first step is always education, and we will do so in this blog by answering a few key questions, such as: Why is FintruX building a lending marketplace, and more importantly, what benefits does a marketplace have for the global community.
With the introduction and proliferation of the internet, alternative financing has seen massive growth in its availability for borrowers. This is mainly in part due to the many benefits that direct lending offers over traditional financing; borrowing from the bank or taking out high-interest private loans. Similar to many sectors that have seen disruption, it comes down to the ease of use, efficiency, and increased accessibility to the platform.
Let’s first define marketplace lending — put simply, it is any platform that connects borrowers and lenders to transact their loan directly with each other. To understand why this has become such a fast-growing sector, let’s look at some of the benefits direct lending offers in more detail.
Benefits
Ease of Use
One of the most attractive aspects of marketplace lending is a simplified application process, especially for borrowers. While the amount of personal information required will vary, the process is usually less intrusive and demanding, in comparison to obtaining a bank loan where they will require business owners to produce profit and loss charts, balance sheets, etc. Additionally, the entire application process can be done from the comfort of your own home.
Higher Credit Eligibility
Marketplace lenders can include more open data sets for credit scoring, and additional factors can also be used to increase credit eligibility for borrowers.
Wider range of lenders
Subscribing to an online marketplace allows borrowers to get access to loans from investors that may not reside in their city, state, or country. This enables more opportunities for borrowers to get the loans they need.
Faster Approvals
Loans can be approved within hours or days, as there are less intermediaries involved.
Lower Interest Charges
With access to additional lenders and additional credit worthiness statistics, borrowers may find the interest rates to be much lower than they would find elsewhere, especially for personal loans.
Cutting Edge Solutions
These five benefits are incredibly attractive for startups or small to medium sized enterprises (SMEs). There are often times that these businesses will need a loan that may be deemed too small for traditional institutions to fulfill, and not suitable for seed funding from venture capital firms. This is where P2P lending is an ideal solution. By helping startups and SMEs keep their business, or provide the expansion capital, P2P lending quickly grew the small business sector over the past ten years.
FintruX Network takes the concept a step further by utilizing the blockchain and no-code development to increase automation and execution processes with smart contracts, enabling for the first time, small businesses to get the affordable funding they need without any collateral, in any currency, within minutes. With this new technology, we create a true marketplace model, where we enable the instant matching of borrowers and lenders and provide highly secure loans.
The ability to get an unsecured loan at affordable rates cannot be understated in its importance in enabling entrepreneurs to sustain their business and provide benefits to the economy as a whole.
Yours Truly,
The FintruX Team
This article is intended to be for general information only and does not in any way constitute professional or financial advice. Interacting in marketplace lending services carries a certain level of risk that may not be suitable for some. Consider your investment objectives, level of experience, financial resources and other relevant circumstances carefully.
Ask the experts :
FintruX Network’s true P2P marketplace lending is possible due to our revolutionary technology. That is why we have a dedicated support team that is always available and willing to help you understand our ecosystem better. Reach out today and learn how you can be part of this new age in enabling SMB development and growth.
Reach out via email at — support@fintrux.com
Learn more by reading our whitepaper.*
*We regularly update our documentation as technology and business trend shifts demand process and workflow improvements. Stay tuned for a major update coming soon!
About us: FintruX Network is the global P2P lending ecosystem powered by blockchain and no-code development. FintruX facilitates marketplace lending in a true peer-to-peer network to ease the cash-flow issues of SMEs that typically face challenges getting loan financing, such as startup companies.
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